The Decision of Which Assumptions to Make Is

question 66

Multiple Choice

The decision of which assumptions to make is

• A)an easy decision for an economist,but a difficult decision for a physicist or a chemist.
• B)not a particularly important decision for an economist.
• C)usually regarded as an art in scientific thinking.
• D)usually regarded as the easiest part of the scientific method.

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Definitions:

Machine-Hours

The total hours that machines are operated in the production process, used as a basis for allocating manufacturing overhead to products.

Cost Of Goods Sold

The total cost directly involved in producing goods or services sold during a specific period.

Predetermined Overhead Rate

A rate calculated before a period begins, used to apply overhead costs to products based on a certain activity such as labor hours or machine hours.

Machine-Hours

A measure of the amount of time machines are operating in the production process, often used to allocate manufacturing overhead costs.