Exhibit 4-16 -If the Price of the Computers Described in Exhibit 4-16

question 11

Multiple Choice

Exhibit 4-16

-If the price of the computers described in Exhibit 4-16 is $900,then there is:

• A) A shortage of 40 computers
• B) A shortage of 80 computers
• C) A surplus of 80 computers
• D) A surplus of 120 computers
• E) A surplus of 40 computers

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Definitions:

Indirect Labor

Labor costs associated with the production process that cannot be directly linked to specific units or products, such as maintenance personnel salaries.

Manufacturing Equipment

Machines and tools used in the process of producing goods.

Direct Materials

Direct materials are raw materials that can be directly attributed to the production of goods.

Product Costs

Product costs are the expenses directly associated with the production of goods, including raw materials, labor, and manufacturing overhead.