Using Overtime or a Second Shift Is Considered ______

question 42

Multiple Choice

Using overtime or a second shift is considered ______.

• A)a short-term capacity decision
• B)a long-term capacity decision
• C)a seasonal capacity decision
• D)a permanent capacity decision

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Definitions:

Absorption Costing

This method includes all manufacturing costs (direct materials, direct labor, and both variable and fixed manufacturing overhead) in the cost of a product.

Markup

The amount added to the cost price of goods to cover overhead and profit, expressed as a percentage of the cost price.

Selling Price

The amount for which a product or service is sold to customers.

Organic Nutrients

Essential minerals and compounds derived from living organisms used to promote plant or soil health.