The Price of a First-Class Stamp in 1957 Was 3

question 57

Multiple Choice

The price of a first-class stamp in 1957 was 3 cents, and it is 45 cents in 2012. From this we know that

• A) both the relative and the absolute price of first-class stamps increased from 1957 to 2012.
• B) the money price of first-class stamps increased from 1957 to 2012 but the absolute price of first-class stamps stayed constant.
• C) the money price of first-class stamps increased from 1957 to 2012 and the relative price of first-class stamps decreased.
• D) the money price of first-class stamps increased from 1957 to 2012, but we can't tell if the relative price of first-class stamps increased or decreased without more information.

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Definitions:

Overhead Applied Rate

A rate calculated to allocate indirect costs to cost objects based on a predetermined formula.

Direct Labor Hours

The total time workers or employees spend directly working on goods or services that are being produced.

Work-in-Process Inventory

Inventory that includes materials that are currently in the process of being fabricated into finished goods.

Finished Goods

Goods that are finished being made but haven't been sold or sent out to buyers yet.