E-Commerce and an Internet Presence Are Important to Many Firms,requiring

question 71

Multiple Choice

E-commerce and an internet presence are important to many firms,requiring employees with specialized skills that are in short supply.The invisible hand solves the employment problem by:

• A)encouraging the government to set up new training programs.
• B)giving selfish workers the incentive to acquire the skills in order to receive high wages.
• C)allowing the few employees with the skills to exploit the firms.
• D)moving slowly until the e-commerce craze ends.

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Definitions:

Direct Labor-Hours

The total hours worked by employees directly involved in the production process, used as a measure in calculating labor costs and efficiency.

Predetermined Overhead Rate

A rate calculated before the accounting period begins, used to allocate manufacturing overhead costs to products based on a selected activity base.

Manufacturing Overhead

All manufacturing costs that are not directly tied to the production of goods, such as rent, utilities, and salaries of maintenance personnel.

Total Manufacturing Cost

The aggregate of all costs directly attributable to the production of goods, including material, labor, and overhead costs.