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In the Circular Flow Diagram, ________ Demand Labor and ________

question 128

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In the circular flow diagram, ________ demand labor and ________ demand goods and services.


Definitions:

Machine-Hours

A measure of the amount of time a machine is used during the production process.

Variable Manufacturing Overhead

Costs that vary directly with the level of production output and are a part of the total manufacturing overhead.

Fixed Manufacturing Overhead

Costs associated with production that do not vary with the level of output, such as salaries of supervisory staff and rent.

Job-Order Costing System

A costing method that accumulates costs per job rather than process, suitable for firms that produce goods to specific customer orders.

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