The Demand Curve for a Human Resource Will Be More

question 167

Multiple Choice

The demand curve for a human resource will be more elastic the

• A) more and better substitutes are available for it.
• B) more difficult it is to substitute other resources for it.
• C) more inelastic the demand for the product the resource is used to produce.
• D) shorter the time period under consideration.

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Definitions:

Direct Labor-Hours

The total hours worked by employees who are directly involved in the production of goods or delivery of services.

Allocation Base

A criterion or measure used for distributing overhead costs among various cost objects, such as machine hours, labor hours, or units produced.

Machine-Hours

A measure of production volume expressed in the total number of hours that machines are operated.

Departmental Predetermined Overhead Rates

Rates used to allocate overhead costs to products, calculated in advance for each department based on estimated overheads and activity levels.