When Adding Another Unit of Labor Leads to an Increase

question 284

Multiple Choice

When adding another unit of labor leads to an increase in output that is smaller than the increases in output that resulted from adding previous units of labor,we have the property of

• A)diminishing labor.
• B)diminishing output.
• C)diminishing marginal product.
• D)negative marginal product.

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Definitions:

Variable Manufacturing Overhead

Costs that vary with the level of production output, such as utilities or commissions, which are indirectly associated with the manufacturing of products.

Total Variable Overhead Variance

Total variable overhead variance is the difference between the actual variable overhead costs incurred and the expected costs based on a standard cost model, indicating inefficiencies in production.

Variable Manuf. Overhead

Costs that vary with the level of production output and are related to the manufacturing process but cannot be directly traced to individual units produced.

Direct Materials

Raw materials that are directly incorporated into a finished product and are easily traceable to it.