What Will Be the Effect on Fixed and Variable Labor

question 33

Multiple Choice

What will be the effect on fixed and variable labor cost percentages if an operation increases its sales volume?

• A) Fixed labor cost percentage and variable labor cost percentage will decline
• B) Fixed labor cost percentage will increase and variable percentage will decline
• C) Fixed labor cost percentage will decline and variable percentage will stay the same
• D) Fixed labor cost percentage will increase and variable percentage will stay the same

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Definitions:

Contractual Remedies

Legal means available to a party under a contract to enforce its rights or compensate for the other party's breach.

Punitive Damages

Monetary compensation awarded to a plaintiff, over and above actual damages, intended to punish the defendant and deter future similar acts.

Breaching Party

The individual or entity that violates the terms of a contract or legal agreement.

Contract Law

The body of law that governs the making, validity, enforcement, and termination of contracts between parties.