In Activity-Based Costing (ABC),the Wage Paid to an Assembly-Line Worker

question 15

Multiple Choice

In activity-based costing (ABC) ,the wage paid to an assembly-line worker would most likely be classified as:

• A) overhead.
• B) a product-level cost.
• C) direct labour.
• D) a facility-level cost.

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Definitions:

Consumer Price Index

The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, used to estimate inflation.

Annual Inflation Rate

The percentage increase in the price level of goods and services in an economy over a year.

Overestimating

The act of assessing something more highly than its actual value or performance, often leading to errors in judgment or planning.

Structurally Unemployed

Describes individuals who are unemployed due to a mismatch between their skills and the jobs available, often because of technological change or fundamental shifts in an economy.