Managers Shift Gears Quickly and Therefore, the Average Time Spent

question 9

Multiple Choice

Managers shift gears quickly and therefore, the average time spent on any one activity is less than _____.

• A) nine minutes
• B) an hour
• C) one workday
• D) a half hour
• E) a half day

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Definitions:

Variable Overhead

Costs that fluctuate with production volume, such as utilities and indirect materials, which are not constant like fixed overhead costs.

Direct Labor

Labor costs directly attributable to the production of goods, including wages of workers who are actively involved in the manufacturing process.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and constitute an integral part of the finished product.

Unassembled Product

A product that is sold in parts and requires assembly by the customer or retailer before it can be used.