If an Economy Is Open

question 45

Multiple Choice

If an economy is open:

• A)anyone can immigrate to the country.
• B)trading with other countries makes up a portion of its economy.
• C)it does not trade with other countries.
• D)Its real GDP will drop.

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Definitions:

Predetermined Overhead Rate

A rate used to apply manufacturing overhead to products or job orders, calculated before the period begins based on estimated costs and activities.

Variable Manufacturing Overhead

The portion of manufacturing overhead costs that vary with the level of production, such as utilities and materials.

Direct Labor-Hours

The cumulative hours employees spend directly participating in the manufacturing process.

Variable Manufacturing Overhead

The portion of manufacturing overhead costs that varies directly with production volume, such as utilities or raw materials.