Which of the Following Will Increase the Wage Rate

question 27

Multiple Choice

Which of the following will increase the wage rate?

• A) An improvement in technology that increases the marginal product of labour
• B) An increase in the adult population
• C) An increase in the retirement age
• D) Both answers A and B are correct.

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Definitions:

Work in Process Inventory

The value of materials, labor, and overhead costs for products that have been started but are not yet completed in the manufacturing process.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to products, calculated before the period begins based on expected costs and activity levels.

Indirect Labour

Labor costs associated with workers not directly involved in the production of goods or services.

Direct Labour Costs

The wages and benefits paid to employees who are directly involved in the production of goods or services.