An Automatic Increase in a Wage Rate Found in Some

question 94

Multiple Choice

An automatic increase in a wage rate found in some contracts is known as a

• A) change of labor agreement.
• B) cost of labor arrangement.
• C) cost of living adjustment.
• D) charge for living amendment.

---

Definitions:

Work In Process

Inventory that includes goods partially through the production process but not yet complete.

Fixed Manufacturing Overhead

Indirect manufacturing costs that remain constant regardless of the level of production, such as rent, utilities, and salaries of managers.

Cost Of Goods Sold

The expenses directly related to the manufacturing of products a company sells, encompassing both materials and labor costs.

Materials Price Variance

The difference between the actual cost of materials and the expected (or standard) cost, used to control and manage costs.