A Factory Abruptly Closes During Hard Economic Times

question 26

Multiple Choice

A factory abruptly closes during hard economic times.An office worker initially tries to take it in stride,begins the job search,and networks with peers.Six weeks later,he has not received a single call-back from a prospective employer.He cannot sleep,is irritable,does not want to interact with his family or peers,paces frequently,and spends several hours most days alone in a local bar.Bills are piling up.He has given up applying for jobs.Which short-term indicator would be most important at this time?

• A) Patient sleeps at least 6 hours per night.
• B) Patient no longer goes to bars each day.
• C) Patient no longer paces regularly.
• D) Patient considering jobs to apply for.

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Definitions:

Direct Manufacturing Cost

The total cost directly involved in the manufacturing of a product, including direct materials and direct labor but excluding overhead.

Indirect Manufacturing Costs

Expenses related to the production process that are not directly tied to the manufacturing of products, such as maintenance and factory overhead.

Gross Margin

The difference between sales revenue and the cost of goods sold, expressed as a percentage of sales revenue.

Variable Cost

Charges that fluctuate in accordance with the degree of business operations or output levels.