Labor Costs in Production Can Be

question 149

Multiple Choice

Labor costs in production can be:

• A) Direct or indirect.
• B) Indirect or sunk.
• C) Direct or payroll.
• D) Indirect or payroll.
• E) Direct or sunk.

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Definitions:

Gross Margin Percentage

A profitability metric expressed as a percentage, calculated by subtracting the cost of goods sold from sales revenue and dividing the result by sales revenue.

Net Profit Margin

The percentage of revenue remaining after all operating expenses, interest, taxes, and preferred stock dividends have been deducted from a company's total revenue.

Return on Assets

A measure of a company's profitability relative to its total assets, indicating how efficiently a company uses its assets to generate earnings.

Cost of Borrowing

The total charges, including interest and any other fees, that a borrower pays to secure and use borrowed money.