If the Selling Price of a Bushel of Cranberries Rises

question 164

Multiple Choice

If the selling price of a bushel of cranberries rises, we would expect the demand for labor in the cranberry industry to

• A)increase.
• B)decrease.
• C)be unchanged.
• D)increase by less than the corresponding decrease in supply.

---

Definitions:

Direct Labour

The labor costs associated directly with the manufacture of goods, including the wages of workers who are actively involved in the production process.

Standard Cost

The predetermined cost of manufacturing a single unit or a number of product units during a specific period, used for budgeting and performance evaluation.

Budget

A financial plan that estimates income and expenditure for a specific period of time.

Equivalent Units

A concept used in process costing that converts partially completed units into a number of fully completed units, facilitating cost calculation.