Stickiness of Wages

question 59

Multiple Choice

Stickiness of wages

• A) is unrelated to stickiness of prices.
• B) lessens the stickiness of prices.
• C) reinforces stickiness of prices.
• D) may or may not reinforce stickiness of prices.

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Definitions:

Machine-Hours

A measure of the amount of time a machine is operated, used in cost accounting to allocate machine-related expenses to products.

Multiple Overhead Rate

A costing method that uses more than one overhead rate to allocate indirect costs to products more accurately.

Plantwide Overhead Rate

A single overhead rate calculated for an entire factory or plant, applied uniformly to all the production units, regardless of the department in which they were produced.

Labor-Intensive

Refers to a type of industry or process that requires a large amount of manpower to produce goods or services, as opposed to being highly automated.