In a Manufacturing Business, Which of the Following Entries Would

question 154

Multiple Choice

In a manufacturing business, which of the following entries would be made to record $10,000 of labour of which 70% of is direct labour, and 30% which is indirect labour?

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Definitions:

Economic Profit

The difference between total revenue and both explicit and implicit costs; the profit that exceeds the opportunity cost of resources.

Perfectly Competitive Markets

Markets in which no individual buyer or seller has any significant impact on prices and products are perfect substitutes.

Minimum ATC

The lowest point on the Average Total Cost curve, indicating the most efficient scale of production for a firm in the long run.

Economic Profit

Profits earned by a firm or an individual after subtracting both the explicit costs and opportunity costs of resources employed.