Which of the Following Is Not Likely to Cause a Decrease

question 74

Multiple Choice

Which of the following is not likely to cause a decrease in labor productivity?

• A)a decline in student achievement scores
• B)a service sector that is growing as a percentage of GDP
• C)decreased spending on research and development
• D)increases in capital formation
• E)high federal budget deficits

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Definitions:

Fixed Manufacturing Overhead

Costs that do not vary with the level of production, such as rent, salaries, and insurance associated with manufacturing.

Variances

Differences between expected and actual performance in business metrics such as costs, revenues, and production levels.

Direct Labor-Hours

The total hours worked by employees directly involved in manufacturing goods or providing services.

Standard Costs

Pre-determined costs used as a benchmark for evaluating actual production costs within a business.