Which of the Following Is an Example of a Labor

question 5

Multiple Choice

Which of the following is an example of a labor cost standard?

• A)$40 per direct labor hour
• B)50 square feet per unit
• C)$0.95 per square foot
• D)0.5 direct labor hours per unit

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Definitions:

Fixed Operating Expenses

Costs that do not fluctuate with the volume of production or sales, such as salaries and rent.

Gross Margin

The difference between revenue and cost of goods sold, indicating the financial health of production processes.

Operating Expenses

Costs associated with the day-to-day operations of a business, excluding costs related to production or sourcing goods.

Variable Cost Per Unit

Variable cost per unit is the cost that varies with the level of output, calculated by dividing the total variable costs by the number of units produced.