A Computer Manufacturer's Elasticity of Demand for Labor Is Not

question 130

Multiple Choice

A computer manufacturer's elasticity of demand for labor is not likely to be affected by the

• A)supply of computers.
• B)price elasticity of demand for computers.
• C)ratio of labor cost to other resource costs in the firm.
• D)ease of substituting capital for labor in producing computers.

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Definitions:

FIFO Method

First-In, First-Out methodology in inventory and cost accounting that assumes the first items produced or acquired are the first ones sold.

Equivalent Units

A concept used in cost accounting to denote the amount of finished goods units that could have been produced given the total amount of direct materials, labor, and overhead costs incurred.

Conversion

A process in manufacturing or production where raw materials or components are transformed into finished goods.

FIFO Method

"First In, First Out" method, an inventory valuation approach where goods first added to the inventory are the first ones to be sold, affecting cost of goods sold and inventory valuation.