Which of the Following Is Included in M1, but Not

question 310

Multiple Choice

Which of the following is included in M1, but not included in M2?

• A) currency held outside banks
• B) travelers checks
• C) demand deposits
• D) none of the above

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Definitions:

Direct Labor-Hours

The broad sum of hours dedicated by workers directly in the manufacturing workflow.

Variable Overhead

Indirect production costs that vary with the level of output, such as utilities for a manufacturing plant.

Direct Materials

Raw materials that can be directly attributed to the production of finished goods.

Direct Labor-Hours

Total working hours accrued by employees integral to the manufacturing sequence.