Day: May 20, 2022

A business employs machinists to make a single product.

As demand increases more machinists are employed. Every time eight extra machinists are employed, one extra supervisor is needed.

How are total labour costs best described?

Select ONE answer:

1. machinists – fixed & supervisors – variable
2. machinists – stepped & supervisors – variable
3. machinists – variable & supervisors – fixed
4. machinists – variable & supervisors – stepped

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

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