Paul's Ltd is considering increasing its production by 5%. If production increases, what is the most likely impact on costs?
A) Administrative wages will increase.
B) Factory casual labour will increase.
C) Power costs will decrease.
D) Depreciation charges will increase.

Question

Quizplus · Accepted Answer

If production increases, there will likely be a need for more factory casual labour to handle the increased workload. This would result in an increase in costs. The other options do not necessarily follow from an increase in production.

Paul's Ltd Is Considering Increasing Its Production by 5