Because of a Bank Merger, Ms

question 270

Multiple Choice

Because of a bank merger, Ms. Davis lost her position as Vice President and had to seek work with other banks. Ms. Davis has the skills necessary to find a new job, thus she is best considered as

• A) frictionally unemployed.
• B) cyclically unemployed.
• C) structurally unemployed.
• D) naturally unemployed.

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Definitions:

Prime Cost

The combined cost of direct materials and direct labor that are directly involved in the manufacturing of a product.

Direct Labour

The expenses related to workers who are directly engaged in creating products or services.

Manufacturing Overhead

Covers indirect costs related to the production process, such as factory salaries, utilities, and rent, that are not directly tied to direct labor or materials.

Conversion Cost

Refers to expenses incurred in the process of transforming raw materials into finished goods, encompassing both labor and overhead costs in manufacturing.