Which of the Following Describes the Effect on Direct Labor

question 14

Multiple Choice

Which of the following describes the effect on direct labor when management adopts the JIT philosophy?

• A)Each direct labor person performs a single task,thereby allowing that person to reach his or her theoretical potential.
• B)Because each person runs a single machine in a JIT environment,there are more employees classified as direct labor.
• C)The environment becomes more labor-intensive.
• D)Machine operators are expected to run several different types of machines,help set up for production runs,and identify and repair machinery needing maintenance.

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Definitions:

Induced Consumption

Refers to the portion of consumer spending that increases or decreases in response to changes in income.

Disposable Income

The pot of funds households have at their disposal for saving and spending, post-income tax.

MPC

refers to the Marginal Propensity to Consume, which is the fraction of additional income that a household spends on consumption.

Disposable Income

The cash flow available to households for the purposes of spending and saving after income taxes.