Mark and His Colleagues Are Members of the Union at Newsprint

question 90

Multiple Choice

Mark and his colleagues are members of the union at Newsprint Inc. While negotiating the terms of the labor contract, they request their employer to deduct union dues from their paychecks. This type of contractual arrangement between the two parties is known as a(n)

• A) agency shop.
• B) checkoff provision.
• C) maintenance provision.
• D) trade-off provision.
• E) union shop.

---

Definitions:

Variable Expenses

Expenses that fluctuate with business activity levels, such as sales commissions or raw material costs.

Transfer Price

The cost at which various segments of a corporation conduct transactions amongst themselves, including the exchange of materials or workforce among different departments.

Transfer Price

The price at which goods and services are sold between divisions within the same company or to a subsidiary.

Outside Supplier

An external entity that provides goods or services to a company, not part of the company’s own operations.