What Types of Things Are Sold in Input or Factor

question 2

Essay

What types of things are sold in input or factor markets? Who are the buyers and sellers in these markets?

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Definitions:

Direct Labor-Hours

Direct labor-hours are the total hours worked by employees directly involved in manufacturing a product or delivering a service.

Standard

A benchmark or a set level of performance or achievement that is established for a process or product.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the standard cost of variable overhead allocated, based on the efficiency of operations.

Supplies Cost

Supplies cost refers to the expense incurred in purchasing office or production supplies that are necessary for day-to-day operations.