Which of the Following Is NOT True About Farm Policy

question 24

Multiple Choice

Which of the following is NOT true about farm policy in United States?

• A) Government support to farmers is in two forms: direct subsidy and price supports.
• B) Farmers growing only 20 of 400 types of crops are eligible for these direct subsidies and price supports.
• C) The amount of subsidy increases with the amount of crop produced,so larger farms benefit more from the subsidies than do small farms.
• D) The price supports decrease the average price of food products for American consumers.

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Definitions:

Activity-Based Costing

An accounting method that assigns costs to products and services based on the activities and resources that go into producing them.

Single Overhead Rate

A method in cost accounting where a single rate is used to allocate each unit of overhead to products or cost objects.

Direct Labor Hours

The total hours worked by employees directly involved in the production process or operation of a service.

Materials Input

The raw materials, components, and supplies used in the production or manufacturing of goods.