Which of the Following Explains Why Production Rises in Most

question 221

Multiple Choice

Which of the following explains why production rises in most years?

• A) increases in prices of goods and services
• B) increases in stock prices
• C) aging population
• D) technological innovation

---

Definitions:

Allocation Methods

Allocation methods are accounting strategies used to distribute costs or revenues among different departments, products, or processes within a company.

Overhead Costs

Indirect expenses related to the operation of a business that are not directly assignable to a specific product or service.

Direct Labor Hours

The total hours worked by employees directly involved in the manufacturing of a product or the provision of a service.

Machine Hours

A measure of production time used in cost accounting to allocate costs to products or job orders, based on the hours a machine is operated.