Which of the Following Would Lead to an Increase in the Demand

question 119

Multiple Choice

Which of the following would lead to an increase in the demand for rental apartments in your area?

• A) a reduction in the rental price of apartments
• B) a sharp increase in the number of out-of-town students attending the local college
• C) an increase in the cost of the materials used to construct apartment units.
• D) an increase in unemployment and reduction in the income of people in your area

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Definitions:

Direct Labor-Hours

The total hours worked directly on manufacturing goods or providing services, often used to allocate labor costs to products or services.

Manufacturing Overhead

Expenses related to the manufacturing process that are not directly attributed to individual units produced, such as maintenance and factory supervision.

Machine-Hours

A measure of the time a machine is operated, used as a basis for allocating manufacturing overhead in some costing systems.

Predetermined Overhead Rate

A calculated rate designed for allocating manufacturing overhead expenses to specific production units, based on a selected activity base.