​If Two Accountants Have Had the Same Education, Amount of Experience

question 107

Multiple Choice

​If two accountants have had the same education, amount of experience, and they work at the same type of job for the same profit-maximizing firm, which charges its clients a uniform hourly fee, then:

• A)they should earn the same amount of money, even though one accountant is more productive than the other.
• B)the one whose job is less risky should be paid more.
• C)the one whose job is riskier should be paid less.
• D)the one who has a higher marginal product should be paid more.
• E)the one who has a higher marginal product should be paid less.

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Definitions:

Machine-Hours

A measure of production time wherein the focus is on the number of hours a machine is operated in the manufacturing of goods.

Casting Department

The casting department is a specialized segment within a manufacturing facility where metal casting processes are carried out to create metal parts.

Finishing Department

A section of a manufacturing company where goods are completed and prepared for sale.

Predetermined Overhead Rate

An estimated overhead rate used to allocate manufacturing overhead costs to products, calculated before the period begins.