The More the Cost Base Is Composed of Variable or Direct

question 120

Multiple Choice

The more the cost base is composed of variable or direct costs,the more ______ managers have over the actual management of this cost base on a day-to-day basis.

• A) influence
• B) power
• C) control
• D) restraint
• E) discipline

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Definitions:

Certification Election

A formal process in which employees vote to decide whether they wish to be represented by a union.

Picketing

Occurs when workers representing the union march at the entrance to the employer’s facility with signs explaining their reasons for striking.

Price Floor

A government- or authority-imposed price control or limit on how low a price can be charged for a product.

Effective Price Floor

A government-imposed price control above the equilibrium price, intended to ensure producers receive a minimum price higher than what the market would naturally dictate.