The Department of Labor Monitors Consumer Expenditures Through Its Annual

question 111

Multiple Choice

The Department of Labor monitors consumer expenditures through its annual Consumer Expenditure Survey. In 2011, consumers spent after taxes about 13 percent of their income on food, 34 percent on __________, 4 percent on clothes and 24 percent on transportation and health care, with the rest generally considered discretionary.

• A)education
• B)housing
• C)vacationing
• D)entertainment
• E)investments

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Definitions:

Allocation Base

A criterion or standard used to distribute overhead costs among various products, services, or departments within a business.

Departmental Overhead Rate

The rate at which indirect costs are allocated to products or services based on department-specific activities.

Direct Labor Hours

The total hours worked by employees that can be directly attributed to the production of goods or services.

Mixing Department

A segment in the manufacturing process where various ingredients or components are combined to produce a final product.