What Is a Likely Explanation as to Why Workers Who

question 22

Multiple Choice

What is a likely explanation as to why workers who have been on the job for a long time earn more than newly hired workers?

• A)Because workers in bad job matches tend to stay on the job longer.
• B)Because workers in long-lasting job matches accumulate specific training over time, which increases the workers' productivity.
• C)Because the positive effects of general training on education erode over time.
• D)Young workers are more productive than older workers.
• E)U.S. law requires older workers to be paid more than younger workers.

---

Definitions:

Manufacturing Overhead

All indirect costs associated with the manufacturing process, including utilities, rent, and salaries for non-direct labor, that are not directly traceable to specific units produced.

Overapplied Manufacturing Overhead

A scenario in which the allocated manufacturing overhead costs exceed the actual overhead costs incurred.

Work in Process Inventory

Items partly finished in manufacturing but not yet ready for sale, representing a stage between raw materials and final products on the balance sheet.

Overapplied Manufacturing Overhead

A situation where the allocated manufacturing overhead costs assigned to products are more than the actual overhead costs incurred.