Labor Costs That Are Clearly Associated with Specific Units of Product

question 218

Multiple Choice

Labor costs that are clearly associated with specific units of product because the labor is used to convert raw materials into finished products are called:

• A) Finished labor.
• B) All labor.
• C) Direct labor.
• D) Contracted labor.
• E) Indirect labor.

---

Definitions:

Wage Rate

The fixed amount of compensation or payment given to an employee by an employer in exchange for the employee's labor, typically expressed per hour or per year.

Training

The process of enhancing the skills, capabilities, and knowledge of employees for the improvement of their performance.

Working Conditions

The environment, including physical and psychological aspects, in which employees carry out their job duties.

Compensating Wage Differentials

Wage differences that compensate workers for risk, unpleasant working conditions, and other undesirable nonpecuniary aspects of a job.