As Reported in the New York Times in November,2008,Ron Gettelfinger,President

question 253

Multiple Choice

As reported in the New York Times in November,2008,Ron Gettelfinger,President of the U. A.W.United Auto Workers Union) testified with auto executives in front of the U.S.Congress,saying,"The U.A.W.can't be the low-hanging fruit...While we're at the table,we're asking that others come in and sacrifice as well." Mr.Gettelfinger was referring to the several ___________ that the autoworkers' union had agreed to over the past few years in order to save jobs and particularly keep retirement benefits intact.

• A)primary boycotts
• B)givebacks
• C)herding tactics
• D)legal mandates

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Definitions:

Variable Costs

Costs that vary directly with the level of production or volume of output, such as raw materials and labor directly involved in manufacturing.

Activity Levels

A measure used in cost accounting to evaluate the relation between the cost of a particular activity and the level of activity executed.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, determined by the proportion of fixed versus variable costs a company has.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much contributes towards covering fixed costs and generating profit.