An amusement park estimates average costs per day. Which of the following is true?
A) Average cost per day considers the relationship between labor costs and other variables such as temperature
B) Average cost per day can be useful in estimating labor costs
C) Average cost per day would include a component of variable labor costs but not fixed labor cost
D) All of the above

Question

Quizplus · Accepted Answer

Average cost per day can help in estimating labor costs as it provides a general idea of the expenses incurred on a daily basis, including both fixed and variable costs, which labor costs are a part of.

An Amusement Park Estimates Average Costs Per Day