An Increase in Direct Labor Cost Per Unit ________

question 134

Multiple Choice

An increase in direct labor cost per unit ________.

• A) increases the fixed cost
• B) increases profits
• C) increases the variable cost
• D) increases overhead costs

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Definitions:

Other Expense

Costs not directly tied to the production of goods or services, such as office supplies or utilities.

Interest Expenses

Costs incurred by an entity for borrowed funds, typically reflected in the income statement.

Selling Expenses

Costs incurred directly from the selling of products or services, such as advertising and sales commissions.

Merchandising Income

The profit generated from buying and selling goods.