In a Process Operation, the Direct Labor of a Production

question 146

Multiple Choice

In a process operation, the direct labor of a production department includes:

• A) All labor used exclusively by that department, even if the labor is not applied to the product itself.
• B) All labor used exclusively by that department, but only if the labor is applied to the product itself.
• C) All labor for that department, including labor for services that help more than one production department, such as clerical, repair, and computer technicians.
• D) Only labor that helps more than one production department, such as clerical, repair, and computer technicians.
• E) Only that labor that is recorded in the Factory Payroll account.

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Definitions:

Marginal Utility

The additional satisfaction or utility a consumer gains from consuming one more unit of a good or service.

Video Game Rental

A service that allows consumers to borrow video games for a limited period of time for a fee.

Total Utility

The total satisfaction a product yields.

Marginal Utility

The additional satisfaction or usefulness gained by consuming one more unit of a good or service.