Labor with a Particular Skill Level and Training Is Used

question 42

Multiple Choice

Labor with a particular skill level and training is used in only two industries: grape cultivation and cranberry cultivation. Which of the following is likely to cause an INCREASE in the demand for this type of labor?

• A) improved technology that leads to more efficient machines for grape picking
• B) publication of a report asserting that drinking two glasses of grape or cranberry juice every day improves digestion and heart health
• C) a report by the USDA that an increasing proportion of grapes are contaminated with unacceptable pesticides
• D) a decrease in the acreage of cranberry bogs

---

Definitions:

Process Costing

A costing method used where similar products are produced in a continuous process, allocating costs based on the average cost of production.

Mixing Department

A section within a manufacturing facility where ingredients or components are combined to produce a final product.

Job-Order Costing

Job-order costing tracks production costs individually for each job or project, making it suitable for customized orders or differentiated products.

Process Costing

An accounting method used to accumulate costs in standardized, continuous production processes, assigning average costs to identical product units.