A Firm Has a Single Wage Rate

question 17

Multiple Choice

A firm has a single wage rate.At present 10 workers are employed at $50 per day.Wages are raised to $55 per day to attract an extra worker.The marginal labor cost per day is:

• A) $5.
• B) $10.
• C) $55.
• D) $105.
• The 11th worker costs $55,but all 10 other workers require a $5 increase in wage.Thus,the total increase is $105.

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Definitions:

Control Features

Mechanisms, policies, or procedures implemented to safeguard assets, ensure accurate and reliable financial data, and promote operational efficiency.

Voucher System

An internal control method in accounting where vouchers are prepared before payments are processed to ensure transactions are authorized and recorded properly.

Check Register

A record of transactions in a checking account, tracking all checks written, deposits made, and current balance.

Selling Company

A business entity that primarily engages in selling goods or services to consumers or other businesses.