A Computer Manufacturer's Elasticity of Demand for Labor Is Not

question 236

Multiple Choice

A computer manufacturer's elasticity of demand for labor is not likely to be affected by the

• A) supply of computers.
• B) price elasticity of demand for computers.
• C) ratio of labor cost to other resource costs in the firm.
• D) ease of substituting capital for labor in producing computers.

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Definitions:

Equivalent Units

A concept in cost accounting used to express the amount of work done on partially finished goods, converted to a number of fully finished units.

Processing Department

A specific section within a manufacturing facility focused on a particular stage of production or processing activity, essential for completing the manufacturing of goods.

Weighted-Average Method

An inventory costing method that assigns a cost to inventory items based on the average cost of all similar items purchased or produced.

Equivalent Units

A concept in process costing that quantifies the amount of materials or labor required to complete a unit of production, adjusting for partial completion.