In 1776, Adam Smith Observed What Fact About the Western

question 114

Multiple Choice

In 1776, Adam Smith observed what fact about the Western Hemisphere?

• A) There was not enough land.
• B) There were not enough slaves.
• C) There were too many contagious diseases transmitted back to Europe.
• D) Colonies had done more harm than good for western Europe.
• E) Its discovery was one of the two greatest events in history.

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Definitions:

Machine-Hours

A measure of the amount of time a machine is operated, used as a basis for allocating manufacturing overhead costs in some costing systems.

Markup

The amount added to the cost price of goods to cover overhead and profit; it calculates the selling price.

Manufacturing Overhead

All indirect costs associated with manufacturing, excluding direct materials and direct labor, such as maintenance, depreciation, and utilities.

Predetermined Overhead Rate

A rate calculated before a period begins, based on the estimated total manufacturing overhead costs and estimated allocation base, used to allocate overhead to products or job orders.