Certain Professions Limit the Number of Students Who Are Eligible

question 23

Multiple Choice

Certain professions limit the number of students who are eligible to enroll in their programs in university - engineering,architecture,dentistry,and law,for example.What is the predicted effect of such a policy in each of these professions?

• A)An increase in supply and a wage that is lower than it otherwise would be.
• B)A reduction in supply and a wage that is lower than it otherwise would be.
• C)An increase in supply and a wage that is higher than it otherwise would be.
• D)A reduction in supply and a wage that is higher than it otherwise would be.
• E)These professions are a relatively small portion of the labour market and so there will be no detectible change in wages.

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Definitions:

Conversion Cost

The combination of direct labor and manufacturing overhead costs incurred to convert raw materials into finished goods.

Process Costing

A cost accounting method used for homogenous products that are produced in a continuous flow, involving computing the cost per unit by dividing total costs by the units produced.

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold based on the average cost of all items available for sale during the period.

Cost Reconciliation

Cost reconciliation is the process of analyzing and adjusting the differences between the actual costs incurred and the standard or budgeted costs to understand variances in manufacturing or production activities.