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Statement I.Two ways to prevent public utilities from charging outrageous prices are (1) government regulation and (2) government ownership.
Statement II.Large firms always behave badly.
Activity Rate
The predetermined rate used to allocate overhead costs to products or services based on a specific activity measure, such as machine-hours or labor-hours.
Labor-Related Activity
Activities or tasks that directly involve or are associated with the workforce's efforts in the production process or service delivery.
Traditional Costing Method
A costing method that allocates overhead costs to products based on a predetermined rate, usually associated with direct labor hours or machine hours.
Direct Labor-Hours
A measurement of the actual amount of production work done by employees, expressed in hours, not involving indirect labor.
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