One of the Two Criteria for a Resource to Be

question 168

Multiple Choice

One of the two criteria for a resource to be considered capital is that it must:

• A) occur naturally.
• B) be part of a factory or building.
• C) be a skill or talent possessed by a person.
• D) be possible to use it to produce other goods and services.

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Definitions:

Underapplied Manufacturing Overhead

The situation where the actual manufacturing overhead costs are higher than the overhead costs allocated to products.

Cost of Goods Sold

An accounting term representing the direct costs linked to the production of goods sold by a company, including both materials and labor.

Overapplied Manufacturing Overhead

A case where the estimated costs for manufacturing overhead outstrip the actual overhead expenditures.

Underapplied Manufacturing Overhead

Occurs when the actual manufacturing overhead costs are higher than the manufacturing overhead assigned to goods produced.