Resources Are Not Usually Hired on a Day-To-Day Basis to Meet

question 16

Multiple Choice

Resources are not usually hired on a day-to-day basis to meet fluctuating requirements.This means that

• A) the maximum number of project resources should be hired for the project duration.
• B) if the workers are employed for the duration of the project and it may be necessary to pay them when idle or overtime when at peak demand.
• C) the actual work performed for each activity should be evaluated to inform the next activity of the number of workers needed.
• D) all projects should plan all tasks for one person to complete the activities to keep the person busy.

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Definitions:

Profits

The financial gain calculated by subtracting total expenses from total revenue.

Units Produced

The total number of finished products that a company manufactures during a specific period.

Variable Costing

A method of costing that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in the cost of goods sold and treats fixed manufacturing overhead as a period expense.

Absorption Costing

A method of accounting that encompasses all costs involved in manufacturing, including direct materials, direct labor, and both variable and fixed manufacturing overhead, as part of a product's cost.