Which of the Following Increases in Labor Demand Is Due

question 101

Multiple Choice

Which of the following increases in labor demand is due to a change in the product demand?

• A)Access to computers increases the productivity of mail order businesses, thus increasing the demand for their workers.
• B)Tourism increases in popularity, increasing the demand for workers at tourist resorts.
• C)A decrease in the price of trucks decreases the cost of transporting goods, thus increasing the demand for truckers.
• D)A change in work rules increases output per worker in the auto industry, thus increasing the demand for autoworkers.

---

Definitions:

Variable Costing

A costing method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs, excluding fixed manufacturing overhead.

Operating Income

Earnings generated from a company's standard business operations, excluding income from investments and other non-operational sources.

Absorption Costing

A bookkeeping approach that encompasses all production expenses, including direct materials, direct labor, and all overhead costs, both variable and fixed, in the price of a product.

Operating Income

The profit realized from a business's operations after subtracting operating expenses like wages, depreciation, and cost of goods sold.