Which of the Following Events Could Decrease the Demand for Labor

question 212

Multiple Choice

Which of the following events could decrease the demand for labor?

• A)An increase in the number of migrant workers
• B)An increase in the marginal productivity of workers
• C)A decrease in demand for the final product produced by labor
• D)A decrease in the supply of labor

Compare product and period costs under variable and absorption costing.

Interpret the impact of product line elimination on overall company profit.

Understand the difference between variable costing and absorption costing, including how each treats various costs.

Comprehend the impact of production and sales levels on net operating income under both costing methods.

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Definitions:

Predetermined Overhead Rate

An estimated charging rate used to apply manufacturing overhead costs to produced units, based on a selected activity base.

Predetermined Overhead Rate

A predetermined rate employed to allocate estimated manufacturing overhead costs to products, calculated before the period starts, using projected costs and activity levels.

Direct Labour Hour

A measure of labor that directly contributes to the production of goods, used in calculating labor costs and efficiency.

Manufacturing Overhead

All manufacturing costs that are not directly associated with the production of a product, including costs related to indirect materials, indirect labor, and other indirect expenses.