Which of the Following Is an Example of a Direct

question 171

Multiple Choice

Which of the following is an example of a direct 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:

New Buy

A purchasing situation where a buyer is acquiring a product or service for the first time, requiring significant research and decision-making.

Inexpensive Creative Way

A cost-effective method that employs originality and innovation to achieve a goal or solve a problem.

Buy-Class Situation

Refers to the classification of purchasing situations into categories based on the degree of effort and time invested, such as new buys, straight re-buys, and modified re-buys.

Buying Center Tendencies

Patterns or habitual behaviors of a buying center, which is a group of individuals within an organization that make decisions about significant purchases.