Labor Costing MCQs

True Tamplin

Written by True Tamplin, BSc, CEPF®
Updated on July 22, 2022

This multiple choice question (MCQ) test covers labor costing. By completing this quiz, you’ll be able to test your knowledge and prepare for exams or job interviews.

This MCQ quiz contains 7 questions with 4 options for each question. Based on your knowledge of labor costing, choose the correct option for each MCQ.

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Frequently Asked Questions

How is vacation pay calculated for factory workers?

Factory workers are typically paid a set amount for vacation days, regardless of how many days they work in a given year. For example, an employee might be entitled to 10 days of vacation per year, even if they only work five days per week. This ensures that all employees are treated equally, regardless of how many days they work. Some companies may also offer a payout for unused vacation days, which is typically calculated as a percentage of the employee’s annual salary.

What happens if an employee quits or is fired before taking vacation days?

The average amount of vacation pay offered by factories varies but is typically around two weeks’ salary. This allows employees to take time off without feeling like they are losing out on income.

What happens if an employee quits or is fired before taking vacation days?

What happens if an employee quits or is fired before taking vacation days?

What is labor cost?

Labor costs are the total of wages paid to, and payroll taxes for all employees.

What are the two categories of labor cost?

Labor costs can be categorized as direct or indirect. Direct labor costs are the wages paid to employees that physically produce products. Indirect labor costs are those that cannot be specifically tied to a product—for instance, the cost of maintaining an office building.

True Tamplin, BSc, CEPF®

About the Author
True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.

11 thoughts on "Labor Costing MCQs"

    1. Thanks! Let us know what other kinds of information you’d like to see and we’ll try to add it in the future. Best of luck!

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