The Use of the Supply and Demand Model to Analyze

question 4

Multiple Choice

The use of the supply and demand model to analyze labor markets implicitly assumes that

• A)sellers of labor have good knowledge about their opportunities.
• B)there is one buyer of labor.
• C)there is one seller of labor.
• D)there is one buyer and one seller of labor.

Calculate the predetermined overhead rate based on various bases such as machine-hours, labor-hours, and direct labor cost.

Appreciate the complexity and accuracy of multiple overhead rate systems versus a single plantwide overhead rate.

Apply manufacturing overhead to jobs using the calculated predetermined overhead rate.

Distinguish between indirect costs that are difficult to trace to a particular job from those that are not.

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Definitions:

Income Statement Debit

This is not a typical term in accounting as income statements are structured around revenues and expenses rather than debits and credits.

Credit Columns

The sections on the right side of accounting ledgers where credit transactions are recorded.

Chart Of Accounts

A systematic listing of all account titles and numbers being used by an organization to track its financial transactions and prepare financial statements.

Ledger

A comprehensive book or computer file for recording and totaling economic transactions measured in terms of a monetary unit of account by account type, with debit and credit entries in separate columns and a beginning and ending balance for each account.