Each of the Following Is an Example of an Economic

question 77

Multiple Choice

Each of the following is an example of an economic resource except

• A)land.
• B)money.
• C)capital.
• D)labor.

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Definitions:

Predetermined Overhead Rate

A calculated rate used in cost accounting to allocate overhead costs to products or services, based on estimated overhead costs and activity levels.

Direct Labour Hours

The total hours worked by employees who are directly involved in the production process of a company.

Underapplied Overhead

Occurs when the allocated manufacturing overhead costs are less than the actual overhead costs incurred.

Direct Labour Cost

The total cost of all the labor force that is directly involved in the manufacturing of a product or the provision of a service.