Which of the Following Factors Will Reduce Considerably the Ability

question 530

Multiple Choice

Which of the following factors will reduce considerably the ability of a union to raise the wages of its workers?

• A) an elastic demand for the goods produced by union labor
• B) a five-year apprenticeship before one can qualify for jobs held by union members
• C) high tariffs on goods produced by the union labor
• D) favoritism in the allocation of government contracts to firms that employ union labor

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Definitions:

Work in Process Inventory

The account used in manufacturing to track the costs of products that are in the production process but not yet completed.

Overapplied Manufacturing Overhead

A situation where the actual manufacturing overhead costs are less than the overhead assigned to products.

Underapplied Manufacturing Overhead

The condition where the estimated manufacturing overhead costs are less than the actual overhead incurred, resulting in a shortfall that needs to be adjusted.

Finished Goods

Items that are ready after production but still await sale or delivery to consumers.