Which Book Illustrates the Advantages of Specialization Using an Eighteenth-Century

question 103

Multiple Choice

Which book illustrates the advantages of specialization using an eighteenth-century pin factory as an example?

• A)Free to Choose,by Milton Friedman
• B)The Wealth of Nations,by Adam Smith
• C)Das Kapital,by Karl Marx
• D)The General Theory,by John Maynard Keynes

---

Definitions:

Variable Manufacturing Costs

Costs that fluctuate with the level of production, including direct materials, direct labor, and variable manufacturing overhead.

Direct Method

An accounting approach used to allocate service department costs directly to producing departments without considering other service departments.

Janitorial Department

A division within an organization responsible for maintaining cleanliness, hygiene, and sanitation within the premises.

Cost Allocated

The amount of indirect costs assigned to cost objects based on certain criteria or cost drivers.