Which of the following statements about time and material pricing is/are true?
i. The labour charge includes the direct cost of the employee's time.
ii. The labour charge includes a charge to cover various overhead costs.
iii. The labour charge includes a handling charge for material.

Question

Quizplus · Accepted Answer

Statement i is true, as the labour charge in time and material pricing includes the direct cost of the employee's time. Statement ii is also true, as the labour charge may include a charge to cover various overhead costs such as rent, utilities, and administrative expenses. Statement iii is not true, as the handling charge for material would typically be included as a separate charge and not included in the labour charge. Therefore, the best choice is B, as statements i and ii are both true.

Which of the Following Statements About Time and Material Pricing