The Proponents of the Cheap Foreign Labour Argument Mistakenly

question 149

Multiple Choice

The proponents of the cheap foreign labour argument mistakenly:

• A)look at the labour costs per unit rather than labour costs per hour.
• B)look at the labour costs per hour rather than labour costs per unit of output.
• C)believe that labour costs per unit are not important.
• D)believe that the wage rates in Canada should be reduced in order to compete with low-wage nations.

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Definitions:

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts, or financial statements, is represented as a proportion of the total account.

Net Income

The amount by which revenues exceed expenses.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company.

Profitability Ratios

Financial metrics used to assess a business's ability to generate earnings relative to its revenue, operating costs, balance sheet assets, or shareholders' equity.