The Term "Dollar Votes" Means

question 64

Multiple Choice

The term "dollar votes" means:

• A) inflation will occur if consumers do not spend wisely.
• B) voters may be offered dollars to help elect certain political candidates.
• C) government is responsible for determining what will be considered legal money.
• D) consumers "vote" for certain products to be produced by how they spend their incomes.

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Definitions:

Prime Costs

The combined costs of direct material and direct labor required to produce a good.

Conversion Costs

Costs incurred to convert raw materials into finished goods, including direct labor and manufacturing overhead.

Prime Costs

The combination of direct materials and direct labor costs that are directly attributable to the production of goods.

Nonmanufacturing Cost

Expenses not directly involved in the production of goods, such as selling, administration, and other overhead costs.