Factors of Production Are

question 89

Multiple Choice

Factors of production are:

• A) the resources the economy has available to produce goods and services.
• B) generally unlimited in modern economies.
• C) always employed in modern economies.
• D) the knowledge that can be applied to the production of goods and services.

Recognize the function and importance of financial markets.

Differentiate between real assets and financial assets.

Understand the methods companies use to finance asset purchases.

Acknowledge the role and function of a mutual fund.

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Definitions:

Manufacturing Overhead Budget

A financial plan outlining the projected indirect production costs, such as utilities and maintenance, for a specific period.

Direct Labor-Hour

A measure of the labor time involved in producing a unit of output, often used in costing and budgeting.

Variable Manufacturing Overhead

Costs associated with manufacturing that vary with production volume, such as indirect materials and utilities.

Direct Labor-Hour

A measurement of labor used in production, specifically the time spent by direct labor workers on a given job or project.