Elasticity of Demand for Labor Is Affected by the

question 180

Multiple Choice

Elasticity of demand for labor is affected by the

• A)price elasticity of demand for the product that labor produces.
• B)availability of substitute (nonlabor) factors.
• C)ratio of labor cost to total cost.
• D)all of the above

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Definitions:

Customizing Department

A division within a company that modifies products to meet specific customer requirements or preferences.

Machine-Hours

A measure of the amount of time a machine is operated.

Direct Labor-Hours

Direct Labor-Hours refer to the total hours worked by employees who are directly involved in the production process, affecting the cost of goods.

Predetermined Overhead Rate

A rate used in costing to allocate estimated overhead costs to products or job orders based on a predetermined expense and activity level.