Which of the Following Is an Example of Direct Labor

question 123

Multiple Choice

Which of the following is an example of direct labor?

• A) vice president of marketing
• B) assembly line worker for televisions
• C) staff accountant
• D) supervisor at a manufacturing plant

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Definitions:

Total Fixed Costs

The sum of all costs that remain constant regardless of the level of production or output in the short term.

Total Variable Costs

The total of all costs that vary with the level of output, including costs such as materials and labor that change with the scale of production.

Profit-Maximizing Level

The output level at which a firm achieves the highest possible profit, where marginal revenue equals marginal cost.

Marginal Revenue

The additional income earned by selling one more unit of a product or service.