A plant relying mostly on manual labour would generally have:
A) more variable than fixed costs.
B) more fixed than variable costs.
C) all fixed costs.
D) all variable costs.

Question

Quizplus · Accepted Answer

A plant relying mostly on manual labour would generally have more variable costs due to the fluctuating nature of wages and salaries for manual labour. Other variable costs may include raw materials and supplies needed for production. However, there may also be some fixed costs such as rent or lease for the plant, which are not directly influenced by the amount of labour used. Therefore, option A is the most appropriate choice.

A Plant Relying Mostly on Manual Labour Would Generally Have