The FTC Is

question 247

Multiple Choice

The FTC is

• A) the act that prevents producers from driving out smaller competitors by means of selected discriminatory price cuts.
• B) the commission that investigates unfair competitive practices such as misleading advertising.
• C) an agency which has been set up to regulate the federal government.
• D) the agency set up to regulate hospitals.

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Definitions:

Machine-hours

A measure of production time, calculated by the number of hours a machine is operated in the production of goods.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to products, based on a planned level of activity.

Direct Labor-hours

The sum of hours logged by workers directly engaged in creating products.

Manufacturing Overhead

Manufacturing overhead encompasses all costs of manufacturing beyond direct materials and direct labor, including expenses like factory equipment depreciation and quality control.