Which of the Following Is TRUE Concerning Throughput Costing

question 161

Multiple Choice

Which of the following is TRUE concerning throughput costing?

• A)Throughput contribution is the sum of revenues and direct costs.
• B)Throughput contribution is the difference between revenues and direct costs.
• C)Throughput contribution is the difference between revenues and variable direct labour.
• D)Throughput contribution is the difference between revenues and (variable direct labour + variable direct materials).
• E)Throughput contribution is the difference between revenues and variable direct materials costs.

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Definitions:

Union Shop

A workplace where new employees must join the union representing them within a certain period of time as a condition of their employment.

Taft-Hartley Act

A 1947 U.S. federal law that restricts the activities and power of labor unions.

Collective Bargaining

Collective bargaining is a process where employers and employees negotiate terms and conditions of employment, usually through labor unions.

Right-to-Work Laws

Legislation that prohibits union security agreements, ensuring that employment is not conditional upon union membership or fees.