Different Sectors or Industries Grow or Shrink at Various Stages

question 53

Multiple Choice

Different sectors or industries grow or shrink at various stages in the business cycle.Which statement is true?

• A)Utilities tend to do relatively better in the early stages of an expansion.
• B)Basic materials tend to do well in the early stages of a recession.
• C)Healthcare tends to do well at the peak of an expansion.
• D)The financial sector tends to do relatively better in the early stages of an expansion.

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Definitions:

Handling Costs

Expenses associated with the processing, transporting, and storing of goods throughout the supply chain.

Standard Labor Cost

The predetermined cost of labor assumed in the production of goods or services, used for budgeting and measuring efficiency.

Journalize

The process of recording transactions in a company's journal, detailing the accounts affected and the amounts, as the first step in the accounting cycle.

Direct Labor Hours

The total hours worked by employees directly involved in the production process of goods or services.