Though There Used to Be a Widespread Belief That "We

question 53

Multiple Choice

Though there used to be a widespread belief that "we are all middle class," that adage has eroded. In recent years, many Americans have experienced downward mobility. What is the best explanation for this shift?

• A) changing definitions of social class
• B) shifts in the country's racial composition
• C) a declining work ethic
• D) the 2008 economic recession

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Definitions:

Actual Costs

The genuine costs incurred for materials, labor, and overhead in the production process or in providing a service.

Fixed Manufacturing Overhead

Costs that remain constant in total regardless of the level of production, such as salaries and rent for factory buildings.

Predetermined Overhead Rate

A rate used to apply manufacturing overhead to products or services, calculated before the accounting period begins based on estimated costs.

Fixed Manufacturing Overhead

Costs that do not vary with the level of production or sales, including expenses like rent, salaries, and utilities.