Which of the Following Should Not Be Considered in the Calculation

question 80

Multiple Choice

Which of the following should not be considered in the calculation of direct labor cost?

• A) The employer's portion of social security and unemployment taxes.
• B) The wage rate for each employee multiplied by the number of hours each employee works on each job.
• C) Fringe benefits given to an employee who works on a job.
• D) Overtime pay to an employee as a result of production problems not related to a specific job.

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Definitions:

Lagrange Multiplier

A method used in mathematical optimization to find the maxima or minima of a function subject to constraints.

Price/Demand Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, calculated as the percentage change in quantity demanded divided by the percentage change in price.

Standard Suite

A set of benchmark software or tests designed to evaluate the performance of a system or component.

Nonlinear Optimization Model

A type of optimization model where the objective function or any of the constraints are nonlinear functions.