Assuming Costs Are Represented on the Vertical Axis and Volume

question 55

Multiple Choice

Assuming costs are represented on the vertical axis and volume of activity on the horizontal axis, which of the following costs would be represented by a line that starts at the origin and reaches a maximum value and beyond the point that the line becomes parallel to the horizontal axis?

• A)total direct material costs
• B)a consultant paid £100 per hour with a maximum fee of £2,000
• C)employees who are paid £15 per hour and guaranteed a minimum weekly wage of £300
• D)rent on exhibit space at a convention

---

Definitions:

Hawthorne Studies

A series of experiments conducted in the 1920s and 1930s that studied the effects of changes in the work environment on employee productivity, laying the groundwork for modern human resources management.

Massive Industrialization

The rapid and extensive growth and development of industry and manufacturing capabilities within a region or country.

Worker's Productivity

A measure of the efficiency of a worker, calculated by the output produced over a defined period of time relative to the input used.

Virtuality Of Work

The concept refers to the practice of performing work digitally, often remotely, leveraging technology to accomplish tasks outside of a traditional office environment.