Predicting Business Cycles Is Difficult Because

question 1

Multiple Choice

Predicting business cycles is difficult because

• A) they are very persistent.
• B) the weather changes unpredictably.
• C) statistics lie.
• D) their frequency is irregular.

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Definitions:

Direct Labor

The work of factory employees that can be directly associated with converting raw materials into finished goods.

Product Cost

The total cost associated with producing or manufacturing a product, including materials, labor, and overhead.

Factory Overhead

All costs related to manufacturing that are not direct materials or direct labor expenses.

Cost Allocation

The process by which factory overhead or other costs are assigned to a cost object, such as a job.