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During a contract negotiation, the management of RMS, Inc. and its employee union fail to reach an agreement on an issue related to night shift pay scales. A neutral third party is called in to actively work with both sides and help them reach a settlement. This party suggests several ideas that could help in solving the issue. The process used by the third party in the given scenario is referred to as_____.
Fixed Costs
Fixed costs are expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.
Variable Costs
Costs that change in proportion to the level of production or business activity.
Profit
The financial gain made in a transaction or operation, calculated as the difference between revenue and expenses.
Fixed Costs
Expenses that do not change in relation to levels of production or sales, remaining constant even as output varies.
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