The answer is: by cheap foreign labor
Currently, most of the corporations that operates in america manufacture their products in countries such as China, india, indonesia, phillipines, or Eastern European countries.
People who live in those countries typically have lower standard of living. Because of this, they can agree in receiving salary that are considerably lower compared to the minimum wage in united states.
The answer you’re looking for is “structural relationships”
Answer:
using the predetermined overhead rate
Explanation:
The indirect cost is also known as the overhead cost. The overhead cost are those cost which is related to the factory expenses like - depreciation, property taxes, utility expense, rent expense, repairs expense, indirect labor, and indirect material cost, etc
As we know
Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours) or (estimated machine labor-hours)
As the case maybe
By using the predetermined we can easily allocate the indirect cost to the specific cost
Its not receveable for sure already to the test and got it wrong
