A Favorable Labor Rate Variance Might Be Explained by an Unexpected

question 37

True/False

A favorable labor rate variance might be explained by an unexpected increase in available employees that caused lower wage rates than were anticipated.

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Definitions:

Bargaining Power

The capacity of one party to influence the outcome of negotiations by controlling resources or circumstances that are desirable to the other party.

NLRB

The National Labor Relations Board, an independent federal agency in the United States that enforces labor laws in relation to collective bargaining and unfair labor practices.

Strikes

Work stoppages initiated by employees as a protest against their employer, often to demand better pay, benefits, or working conditions.

Business Cycle

The fluctuations in economic activity that an economy experiences over a period, typically seen in periods of expansion and contraction.