A Business That Pays for Its Workers to Attend a Technical

question 75

Multiple Choice

A business that pays for its workers to attend a technical college is increasing its:

• A) physical capital.
• B) human capital.
• C) organizational skills.
• D) technical knowledge.

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Definitions:

Accumulated Depreciation

The total amount of a tangible fixed asset's cost that has been charged to depreciation expense since the asset was acquired.

Salvage Value

The estimated resale value of an asset at the end of its useful life, after depreciation has been taken into account.

Labor Costs

The total amount of compensation, including wages, salaries, and benefits, paid to employees for their work.

Allocated Fixed Costs

Costs that remain constant for a specific period regardless of the level of production or business activity, which are distributed across different departments or products.