The Rule of 70 Is MOST Useful In

question 150

Multiple Choice

The rule of 70 is MOST useful in:

• A) identifying the causes of economic growth.
• B) identifying the sources of economic growth.
• C) estimating the productivity of labour.
• D) estimating the doubling time of real GDP for a given growth rate.

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Definitions:

Variable Manufacturing

Costs in manufacturing that vary directly with the level of production, such as raw materials and direct labor costs.

Variable Overhead Rate

The rate at which variable overhead costs are allocated to each unit of production, based on a certain activity level.

Direct Labor-Hours

Comprehensive work time recorded by employees who are directly engaged in producing goods.

Denominator Level

The level of activity chosen to allocate fixed costs in absorption costing, often representing capacity or expected production volume.