In a Capitalist Economy

question 29

Multiple Choice

In a capitalist economy,

• A) the state controls the means of production.
• B) the means of production are mostly owned by private individuals.
• C) economic decisions are centralized.
• D) government officials decide what to produce, how to produce it and who gets it.

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Definitions:

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual units of production, based on a chosen activity base.

Direct Labor-Hours

The total hours worked by employees who are directly involved in the production process, used as a basis for assigning labor costs to products.

Machine-Hours

A measure of production time, quantified in hours, that machinery is operating to perform work.

Machining Department

A specialized division within a manufacturing operation that performs machining processes, such as cutting, shaping, or drilling materials.