Which of the Following Items Is $\textbf{ not }$

question 143

Multiple Choice

Which of the following items is $\textbf{ not }$ classified as direct labor for Family Ice Cream Parlor?

• A)Salary of workers making banana splits
• B)Salary of workers adding toppings to sundaes
• C)Salary of store manager
• D)All of these ans choices classified as direct labor.

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Definitions:

Fixed Costs

Costs that do not change with the level of output or production, such as rent, salaries, or loan payments.

Variable Costs

Costs that change in proportion to the amount of goods or services produced.

Average Total Cost

The sum of all production costs divided by the quantity of output produced, yielding the cost per unit on average.

Output

The complete sum of products or services created by an enterprise, field, or economic entity.