What Criteria Must Be Met in Order to Consider the Work

question 60

Multiple Choice

What criteria must be met in order to consider the work of factory employees to be direct labour?

• A)It must be promptly associated with converting materials into products.
• B)It must be physically associated with converting materials into products.
• C)It must be materially associated with converting materials into products.
• D)It must be periodically associated with converting materials into products.

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Definitions:

Per-Unit Cost

The cost associated with producing one unit of a product, calculated by dividing total production costs by the number of units produced.

Diseconomies of Scale

The situation where a company or business grows so large that the costs per unit increase, typically due to inefficiencies.

Economies of Scale

Economies of scale describe the cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Average Cost

The total cost of production divided by the quantity of output, representing the cost per unit of output.