What Are the Seven Areas in Which the Management of a Company

question 65

Essay

What are the seven areas in which the management of a company has to prepare itself before entering contract negotiations with a union?

---

Definitions:

Direct Labor

Labor costs that are easily traced to or directly associated with specific products or services.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a specific product.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and loan payments.

Flexible Budget

A flexible budget adjusts to changes in actual revenue or other activity levels, allowing for more accurate budget comparisons.