Employees Who Convert Direct Materials into a Product or Who

question 22

True/False

Employees who convert direct materials into a product or who provide a service to customers are classified as indirect labour.

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Definitions:

Marginal Cost

The rise in overall expenses resulting from the production of an additional unit.

Marginal Revenue

The additional income from selling one more unit of a good; it is the change in total revenue from an additional unit sold.

Competitive Price-searcher

A market participant that actively seeks out and compares prices in order to find and exploit competitive price advantages.

Marginal Revenue

The revenue gain from selling one more unit of a good or service.