We Typically Think of Labor as a Variable Cost, Even

question 72

Multiple Choice

We typically think of labor as a variable cost, even in the very short run. However, some labor costs may be fixed. Which of the following items represents an example of a fixed labor cost?

• A) An hourly employee
• B) A temporary worker who is paid by the hour
• C) A salaried manager who has a three-year employment contract
• D) none of the above

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Definitions:

Gas Exchange

The biological process by which organisms exchange oxygen and carbon dioxide with their environment, typically involving the respiratory system.

Tidal Volume

The volume of air displaced between normal inhalation and exhalation when extra effort is not applied.

Cardiac Output

The volume of blood the heart pumps through the circulatory system in one minute, an important measure of heart function and efficiency.

Stroke Volume

The amount of blood pumped by the left ventricle of the heart in one contraction, indicating the heart's efficiency in pumping.