Which of the Following Best Explains Why Garbage Collectors Are

question 21

Multiple Choice

Which of the following best explains why garbage collectors are paid a higher wage than many others with comparable skills?

• A) because of the dangers associated with collecting trash
• B) because of the unpleasantness associated with trash collection
• C) because garbage collectors possess skills that are inelastic in demand
• D) because garbage collectors work much longer hours on average than do those in other jobs

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Definitions:

Unit Product Cost

The total cost (both fixed and variable) incurred to produce, store, and sell one unit of a product.

Variable Costing

An accounting method that only considers variable costs for product costing, excluding fixed overheads.

Net Operating Income

Net operating income is the total profit a company generates from its operations, excluding taxes and interest, highlighting operational efficiency.

Absorption Costing

An accounting tactic where the entirety of manufacturing costs—direct materials, direct labor, and manufacturing overhead, both variable and fixed—are included in calculating a product’s cost.