When Workers Go on Strike, Management Is Often Compelled to Keep

question 142

Multiple Choice

When workers go on strike, management is often compelled to keep the business operation running. If it is unable to achieve this on its own, management may

• A) elect to proceed with a lockout.
• B) close down the facility and permanently fire the strikers.
• C) hire strikebreakers.
• D) picket.

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Definitions:

Job-Order Costing

An accounting methodology that assigns costs to specific production batches or jobs, useful for custom or unique products.

Unit Product Cost

The calculated cost of a single unit of product that includes direct materials, direct labor, and manufacturing overhead.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products or job orders, calculated before the period begins based on estimated costs and activity levels.

Machine-Hours

The total duration of operation for machinery within a specified timeframe, used in cost and efficiency analysis.