At a plant where car doors were manufactured, all of the following would be classified as direct labor except:

a.Machinists.
b.Assembly workers.
c.Maintenance personnel.
d.Painters.


ANS: c (Maintenance workers, while integral to the manufacturing process as they keep the machinery maintained, are not direct laborers because they do not actually add value to the product. Machinists, assembly workers and painters would all add value to the manufacture of a car door.)

Business

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Newt, a gun dealer, offers to sell a rare civil war musket to Rush, another dealer, for "$15,000, insurance and shipping paid by buyer." Rush responds, "I accept. Insurance and shipping costs divided equally between seller and buyer." The parties

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