One Way Automation Can Lead to the Creation of New

question 16

Multiple Choice

One way automation can lead to the creation of new jobs is by

• A) producing products quicker, thus shortening the work week.
• B) reducing the price of a product, thus increasing people's real income.
• C) consuming fewer resources, thus improving the environment.
• D) All of the above
• E) None of the above is true. Automation always causes a net loss of jobs.

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Definitions:

Variable Overhead

Overhead costs that fluctuate with changes in production activity levels, such as utilities or materials used in production.

Labour Rate Variance

The difference between the actual cost of labour and the standard or expected cost of labour.

Sales Volume Variances

Sales volume variances represent the difference between the actual quantity of product sold and the expected quantity sold, indicating market performance or operational efficiency.

Standard Costing

A cost accounting method that assigns expected costs to each unit of production to help managers identify variances between expected and actual costs.