The Argument That a Tariff Has to Be Imposed in Order

question 61

Multiple Choice

The argument that a tariff has to be imposed in order to protect any industry just getting started until it gets large enough to be competitive internationally is the

• A) start-up industry argument.
• B) infant industry argument.
• C) baby industry argument.
• D) fledgling industry argument.

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Definitions:

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual products based on a relevant activity base, such as labor hours.

Indirect Labor

Workers or labor costs that support the production process but are not directly involved in the creation of the product.

Supplies

Items or materials used in the production process or in the operation of a business.

Fixed Overhead Volume

refers to the portion of fixed overhead costs that is associated with the production volume, used in calculating efficiency and profitability.