Identify a Disadvantage of Using Temporary and Contract Workers

question 48

Multiple Choice

Identify a disadvantage of using temporary and contract workers.

• A) Revocability of this method is more difficult than other methods of avoiding labor shortage.
• B) These kinds of workers cannot be hired through an agency.
• C) These methods are a relatively slow solution to labor shortage.
• D) These workers tend to be less committed to an organization.
• E) These workers work well in key jobs, but not in those jobs that supplement permanent employees.

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Definitions:

Direct Materials Cost

The cost of raw materials that can be directly traced to the production of goods.

Cost of Goods Manufactured

The total cost of producing goods during a specific period, including raw materials, labor, and overhead expenses.

Adjusted Cost of Goods Sold

The cost of goods sold that has been adjusted for changes in inventory levels or valuation methods.

Overapplied Manufacturing Overhead

A situation where the allocated amount of manufacturing overhead costs exceeds the actual overhead costs incurred.