Paul's Ltd Is Considering Increasing Its Production by 5

question 42

Multiple Choice

Paul's Ltd is considering increasing its production by 5%. If production increases, what is the most likely impact on costs?

• A) Administrative wages will increase.
• B) Factory casual labour will increase.
• C) Power costs will decrease.
• D) Depreciation charges will increase.

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Definitions:

SA8000 Certification

An international certification standard that promotes socially acceptable practices in the workplace, including those related to labor rights and working conditions.

Social Accountability International

An organization dedicated to advancing human rights at workplaces globally through standards and accreditation.

Intensive Audit

A thorough and detailed examination of a company's or organization's accounts, systems, or processes to ensure accuracy and compliance.

North American Free Trade Act (NAFTA)

An agreement that was implemented to remove tariff barriers between the U.S., Canada, and Mexico to encourage economic integration.