A manufacturing company pays an assembly line worker $12 per hour. What is the proper classification of this labor cost?
A)variable cost
B)semivariable cost
C)fixed cost
D)mixed cost

Question

Quizplus · Accepted Answer

A labor cost that is paid based on hours worked is usually considered a variable cost because it fluctuates with the level of production. As more goods are produced, more workers are needed, and thus more money is spent on labor costs.

A Manufacturing Company Pays an Assembly Line Worker $12 Per