Which of the Following Costs Would Be Included as Part

question 71

Multiple Choice

Which of the following costs would be included as part of direct labor?

• A) a cutter in the production of shelving
• B) a materials handler
• C) an assembly-line supervisor
• D) a janitor

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Definitions:

LRATC

Long-Run Average Total Cost, referring to the average cost per unit of output when all inputs are considered variable over time.

Economies of Scale

Businesses experience cost savings linked to the size of their operations, with the per-unit cost usually falling as the operation size grows.

Entire Range

The complete spectrum or entirety of something, without leaving parts out.

Exhausted

A state of extreme physical or mental fatigue, or the depletion of resources or materials.