An increase in direct labor cost per unit ________.
A) increases the fixed cost
B) increases profits
C) increases the variable cost
D) increases overhead costs

Question

Quizplus · Accepted Answer

Direct labor cost is a component of variable cost, which is the cost that varies with production volume. Therefore, an increase in direct labor cost per unit will lead to an increase in variable cost per unit.

An Increase in Direct Labor Cost Per Unit ________