From the Employer's Point of View,two Part-Time Employees Making $12

question 9

True/False

From the employer's point of view,two part-time employees making $12 an hour would be cheaper than one full-time employee making $12 an hour because the part-timers would not receive benefits whereas the full-time employee would receive benefits.

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Definitions:

Direct Materials Cost

The cost of raw materials used to produce a product, which are directly attributable to the product.

Direct Labor-Hours

The combined working hours of employees directly contributing to the manufacturing cycle.

Direct Materials Cost

The cost of raw materials directly used in the production of goods or services.

Overhead Cost

All ongoing business expenses not directly attributed to creating a product or service, including rent, utilities, and salaries of non-production staff.