I Know When I Shop at the Local Grocery Store,I

question 16

Multiple Choice

I know when I shop at the local grocery store,I am helping my community.Which economic principle does this statement BEST represent?

• A)People usually respond to incentives,exploiting opportunities to make themselves better off.
• B)There are gains from trade.
• C)One person's spending is another person's income.
• D)Overall spending sometimes gets out of line with the economy's productive capacity.

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Definitions:

Manufacturing Overhead Account

An account that accumulates all indirect costs associated with the manufacturing process, excluding direct materials and direct labor.

Adjustment

An adjustment in accounting is an entry made in journal accounts that represents a correction or modification to prior financial records.

Predetermined Overhead Rate

A rate used to apply manufacturing overhead costs to products or job orders, calculated before the periods in which it is applied.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, including but not limited to utilities, depreciation, and salaries of supervisors.