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2-10 Labor Costing

Total questions: 14

Worksheet time: 4hrs 30mins

Name
Class
Date
1.

What fraction of sales revenue is associated with labor costs?

a)

One-third

b)

One-half

c)

One-fourth

d)

One-fifth

2.

Which of the following is NOT a characteristic of labor costs?

a)

Tied to sales

b)

Fixed cost

c)

Controllable

d)

Semivariable cost

3.

Full-time employees are typically:

a)

Paid hourly

b)

Salaried

c)

Commission-based

d)

Freelancers

4.

What is the relationship between employee turnover and labor costs?

a)

Higher turnover = lower labor costs

b)

Higher turnover = higher labor costs

c)

Lower turnover = higher labor costs

d)

Turnover does not affect labor costs

5.

Which of the following is directly impacted by employee turnover?

a)

Labor costs

b)

Product quality

c)

Customer satisfaction

d)

Market share

6.

What does the document suggest about the number of employees hired to fill one position?

a)

It reduces labor costs

b)

It contributes to labor costs

c)

It has no effect on labor costs

d)

It improves employee satisfaction

7.

Which of the following is a factor contributing to labor costs?

a)

Employee turnover

b)

Office design

c)

Product innovation

d)

Customer feedback

8.

What is the effect of higher employee turnover on training costs?

a)

It decreases training costs

b)

It increases training costs

c)

It has no effect on training costs

d)

It stabilizes training costs

9.

What is the purpose of scheduling hourly staff according to anticipated sales?

a)

To reduce training costs

b)

To align labor with expected demand

c)

To increase employee satisfaction

d)

To minimize equipment usage

10.

Which of the following is a characteristic of variable costs?

a)

They are constant regardless of sales

b)

They fluctuate with sales volume

c)

They are predetermined annually

d)

They are unrelated to production levels

11.

What is the purpose of using a master schedule in crew scheduling?

a)

To increase costs

b)

To serve as a template

c)

To reduce flexibility

d)

To eliminate communication

12.

This is the amount of sales an operation does over a given period of time.

a)

Fixed Costs

b)

Business Volume

c)

Variable Costs

d)

Sales Forecasts

13.

True or False: As projected sales go up, so should the number of employees scheduled.

a)

True

b)

False

14.

Which of the following is NOT a part of a good scheduling contingency plan?

a)

Cross-train employees

b)

Have on-call employees

c)

Identify Shift Leaders

d)

Institute tardiness policy