The Wages of Which of the Following Employees Would Not

question 45

Multiple Choice

The wages of which of the following employees would not be included in the product cost for a manufacturer of custom-built home cooking appliances?

• A)shipping clerk
• B)appliance body welder
• C)factory janitor
• D)shop floor supervisor

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Definitions:

Direct Labour

The wages paid to workers who are directly involved in the manufacturing of products or providing services.

Standard Variable Overhead Rate

is a predetermined rate used to allocate variable overhead costs to each unit of production based on a particular activity, such as labor hours.

Ideal Standards

Standards that assume perfect operating conditions with no inefficiencies, waste, or delays, used for benchmarking or motivating improvement.

Forecasting

The process of making predictions about future events or trends based on historical data and analysis.