2-10 Labor Costing

What fraction of sales revenue is associated with labor costs?

• One-third

• One-half

• One-fourth

• One-fifth

Which of the following is NOT a characteristic of labor costs?

• Tied to sales

• Fixed cost

• Controllable

• Semivariable cost

Full-time employees are typically:

• Paid hourly

• Salaried

• Commission-based

• Freelancers

What is the relationship between employee turnover and labor costs?

• Higher turnover = lower labor costs

• Higher turnover = higher labor costs

• Lower turnover = higher labor costs

• Turnover does not affect labor costs

Which of the following is directly impacted by employee turnover?

• Labor costs

• Product quality

• Customer satisfaction

• Market share

What does the document suggest about the number of employees hired to fill one position?

• It reduces labor costs

• It contributes to labor costs

• It has no effect on labor costs

• It improves employee satisfaction

Which of the following is a factor contributing to labor costs?

• Employee turnover

• Office design

• Product innovation

• Customer feedback

What is the effect of higher employee turnover on training costs?

• It decreases training costs

• It increases training costs

• It has no effect on training costs

• It stabilizes training costs

What is the purpose of scheduling hourly staff according to anticipated sales?

• To reduce training costs

• To align labor with expected demand

• To increase employee satisfaction

• To minimize equipment usage

Which of the following is a characteristic of variable costs?

• They are constant regardless of sales

• They fluctuate with sales volume

• They are predetermined annually

• They are unrelated to production levels