In the Equation

question 13

Multiple Choice

In the equation ,
Represents:

• A) total factor productivity.
• B) physical capital.
• C) natural resources.
• D) the capital = labor ratio.
• E) the real interest rate.

---

Definitions:

Direct Labor Cost

The total cost of workforce directly involved in the production of goods or services, excluding indirect labor such as administration.

Variable Costing

A costing technique that only assigns variable production costs to inventory, helping managers understand the impact of production levels on total costs.

Net Operating Income

The income produced through a firm's regular commercial activities, not including taxes and interest.

Variable Costing

A record-keeping system in accounting that inputs only variable production-related expenses (direct materials, direct labor, and variable manufacturing overhead) into the cost evaluation of goods.