Question

When tying cost to staffing for the annualizing method, the: cost of nonproductive days is already...

When tying cost to staffing for the annualizing method, the:

cost of nonproductive days is already in the formula
the base rate must be increased, or burdened, by the nonproductive time
Both A and B
neither A nor B
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Answer #1

Option A

cost of nonproductive days is already in the formula

In the annualizedd method we actually calculate the cost of staffing for the whole year . Thus we are taking a standard days in calculating which included non productive days thus

cost of nonproductive days is already in the formula

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