Which of the Following Is Most Likely to Result from an Increase

question 149

Multiple Choice

Which of the following is most likely to result from an increase in the demand for computer technicians?

• A) an increase in the wages of computer technicians, which will attract additional technicians in the long run
• B) an increase in the employment of computer technicians, which will depress current wage rates but eventually lead to higher wage rates for technicians
• C) a decline in the number of persons preparing themselves for careers as computer technicians
• D) lower wage rates and a shortage of computer technicians

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Definitions:

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual products or job orders, based on a specific activity base, such as labor hours or machine hours.

Fixed Component

The portion of total costs that remains unchanged regardless of the level of production or business activity.

Variable Overhead Rate

The cost of indirect manufacturing expenses that fluctuate with production volume, calculated per unit of activity or base.

Efficiency Variance

A measure used in cost accounting to determine the difference between the actual cost of producing an item and the standard cost, based on the actual hours worked.