Many Universities Have Either a Top Football Program OR a Top

question 33

Multiple Choice

Many universities have either a top football program OR a top basketball program.Very few have both.These results suggest the presence of

• A) economies of scope.
• B) diseconomies of scope.
• C) returns to scale.
• D) the law of diminishing marginal returns.

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Definitions:

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products, calculated before the actual costs are known, based on estimates.

Actual Manufacturing Overhead

The actual indirect costs incurred in the production process, including utilities, depreciation, and maintenance of production facilities.

Manufacturing Overhead

All manufacturing costs that are not directly associated with the production of a product, including indirect materials, indirect labor, and other indirect costs.

Finished Goods Inventory

The products that have completed the manufacturing process, ready to be sold to customers.