Question

Busy Bakers Inc. has four different styles of bagels produced each day. Larry is a baker, and is responsible for baking all of the products as they come to their area of the manufacturing plant. They have six ovens that are used to make all styles of bagels. How would their wages be classified?

Answer 1

The wages for Larry, the baker at Busy Bakers Inc., would be classified as labor costs. Labor refers to the human effort involved in production, both physically and mentally.

Step-by-step explanation:

The wages for Larry, the baker at Busy Bakers Inc., would be classified as labor costs. Labor refers to the human effort involved in production, both physically and mentally.

In this case, Larry's wages would be considered part of the labor cost because he is responsible for baking all the products using the ovens.