The Main Volume Related Driver of Indirect Costs in a Highly

question 62

Multiple Choice

The main volume related driver of indirect costs in a highly mechanised operation is most likely to be:

• A)direct labour dollars.
• B)direct labour hours.
• C)machine maintenance dollars.
• D)machine hours.

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Definitions:

Misallocation

Inefficient distribution or use of resources, often resulting in reduced economic efficiency or productivity.

Improved Quality

Enhancements or upgrades to the standards of products, services, or processes to exceed previous benchmarks.

Partnership

A formal business arrangement involving two or more persons who equally share in the management and financial gains.

Real Wage

Real wage refers to the purchasing power of wages, taking into account the effects of inflation or deflation. It represents how much goods and services wages can actually buy.