Which of the Following Statements Does Not Reflect the Concept

question 251

Multiple Choice

Which of the following statements does not reflect the concept of factor suitability?

• A)It is one of the three concepts that explain the Law of Increasing Cost.
• B)If the economy is shifting from butter to gun production,the butter makers will give the gun makers their worst workers.
• C)Too many farmers work one field,eventually it will lead to less production.
• D)All farmland is not equally well-suited for producing corn.

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Definitions:

Predetermined Overhead Rate

An estimated overhead rate used to assign expected overhead costs to individual units of production, aiding in budgeting and cost control.

Fixed Manufacturing Expenses

Costs that do not vary with the level of production, such as rent, salaries, and equipment depreciation.

Selling and Administrative Expenses

Expenses related to the sale of products or services and the general administration of a business, excluding production costs.

Fixed Manufacturing Overhead

The portion of manufacturing overhead costs that remain constant regardless of the level of production, such as depreciation on factory equipment or salaries of factory supervisors.