A Quasi-Fixed Cost of Labor Is a Cost That

question 10

Multiple Choice

A quasi-fixed cost of labor is a cost that

• A) is expected to change over time.
• B) is proportional to the number of hours worked.
• C) is proportional to the number of workers hired.
• D) is proportional to the amount of capital used.

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Definitions:

Unearned Revenue

Funds paid to a person or corporation for goods or services that are to be provided or delivered in the future.

Patent

A legal document granted by the government giving an inventor exclusive rights to make, use, and sell an invention for a certain number of years.

Office Supplies

Items used in an office on a regular basis, such as paper, pens, and envelopes, which are consumed in use and need regular replenishment.

Temporary Accounts

Accounts used to record transactions within a specific accounting period, which are then closed and transferred to permanent accounts at the end of the period to prepare the company's financial statements.