It Would Be Most Appropriate to Develop Direct Labor Time

question 167

Multiple Choice

It would be most appropriate to develop direct labor time standards for use in administrative activities when the activity involves:

• A) repetitive task that produces common output.
• B) nonrepetitive task that produces common output.
• C) top-level management.
• D) task related to nonmeasurable output.

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Definitions:

Enterprise Product

A product or service designed for large organizations, emphasizing robustness, scalability, and integration capabilities.

Variable Cost

Costs that change in proportion to the level of activity or volume produced, such as materials and labor costs.

Enterprise Product

A product designed specifically for organizational use to cater to the complexity and scale of enterprise requirements.

Profit-Volume Chart

A chart used to assist management in understanding the relationship between profit and volume.