The Gap Between Workers and Their Managers Is 27 Percent

question 20

Multiple Choice

The gap between workers and their managers is 27 percent smaller in unionized firms because _____.

• A) managers in union firms receive lower wages
• B) worker wages are less likely to go up in unionized firms
• C) managers in nonunion firms receive higher wages to maintain internal equity
• D) worker wages go up faster than manager wages in unionized firms

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Definitions:

Revenue Center

A segment or area of a business responsible for generating revenue, focusing on sales and outward-facing operations rather than cost control.

Human Resource Department

The division of a company responsible for managing employee-related processes, including recruitment, training, and benefits.

Department Income Statement

A financial statement that shows the revenue, expenses, and net income or loss of a specific department within a company.

Gross Profit

The difference between revenue and the cost of goods sold before deducting overhead, payroll, taxation, and interest payments.