With the Time and Material Pricing Method, the Hourly Time

question 33

Multiple Choice

With the time and material pricing method, the hourly time charge is typically set equal to:

• A) the hourly labor cost.
• B) the hourly labor cost + annual overhead.
• C) the hourly labor cost + an hourly overhead charge + an hourly charge to cover the profit margin.
• D) annual overhead + an hourly charge to cover the profit margin.
• E) the hourly labor cost + an hourly charge to cover the profit margin.

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Definitions:

Vertical Axis

In a graph or chart, the y-axis, which is perpendicular to the horizontal axis and usually represents the dependent variable in an equation or data set.

Market for Coffee

The global or local marketplace in which coffee, as a commodity, is traded among buyers and sellers.

Intermediate Run

A period of time too long for some factors to remain fixed, allowing for adjustments in production but not long enough for all variables to be fully flexible.

Linear Supply and Demand Curves

Graphical models where the supply and demand for a good are represented by straight lines, indicating a constant relationship between quantity supplied/demanded and price.