The Following Table Indicates the Reductions in Total Losses Due

question 129

Multiple Choice

The following table indicates the reductions in total losses due to theft if a jewelry store hires additional security guards.
If the security guards can be hired for $65 per day, how many guards should the shop hire?

• A) 3
• B) 4
• C) 5
• D) 6

---

Definitions:

Product Cost

The total expense incurred to produce and deliver a product, including direct materials, labor, and overhead.

Period Cost

A type of expense that is not directly tied to the production process and is expensed in the period it is incurred.

Direct Labor

The labor costs directly attributable to the production of goods or services in a company.

Product Cost

The total of costs directly associated with the creation of a product, including raw materials, labor, and manufacturing overheads.