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Dave, a graduate student, has difficulty talking to groups. Unfortunately, he has chosen a career in which he must speak to large groups of people. The night before a presentation he tosses and turns, and the resulting lack of sleep makes the situation worse. When he makes a presentation, he often becomes confused and stumbles over his words. As a result, he feels worthless and miserable. Which two criteria of abnormal behavior are most useful in analyzing this case?
Direct Labor
The labor costs directly tied to the production of goods or services, which can be directly attributed to specific units of production.
Direct Materials
Raw materials directly traceable to the production of goods, considered a variable cost.
Overhead Cost
Indirect costs related to the general operation of a company, such as rent, utilities, and administrative salaries, not directly tied to the production of goods or services.
Incremental Cost
The additional cost associated with producing one extra unit of production or conducting an activity.
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