Choosing Direct Labor Cost Rather Than Direct Labor Hours as a Cost

question 122

Multiple Choice

Choosing direct labor cost rather than direct labor hours as a cost driver for overhead costs implies that ________.

• A) direct labor cost data is more accurate
• B) direct labor cost data is easier to obtain
• C) higher paid employees use proportionately less overhead support than lower paid employees
• D) higher paid employees use proportionately more overhead support than lower paid employees

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Definitions:

Conditions of Employment

The terms, circumstances, and environment under which an employee works, including hours, salary, benefits, and workplace policies.

Cooling Off Period

A mandatory time frame designed to prevent immediate industrial action after a union vote, giving negotiations a chance to resume without disruption.

Board of Inquiry

A group officially appointed to investigate and report on a specific issue, often related to labor disputes or industrial issues.

Spontaneous Work Stoppage

Unplanned work stoppages initiated by employees without formal union organization or direction, often in direct response to immediate concerns or grievances.