When a Union Bargains Successfully with an Employer, What Happens

question 78

Multiple Choice

When a union bargains successfully with an employer, what happens to unemployment and wages in that industry?

• A) unemployment and wages increase
• B) unemployment and wages decrease
• C) unemployment decreases and wages increase
• D) unemployment increases and wages decrease

Understand the components and purposes of control systems within management accounting.

Distinguish between different types of variances, including cost, labour, and material variances.

Calculate variances from standard costs, including material, labour, and direct labour rate variances.

Identify responsibility centers and analyze their performance through variance analysis.

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Definitions:

Variable Overhead

Costs that fluctuate with production levels, such as utilities or materials used in the manufacturing process.

Variable Costing

An accounting method that includes only variable manufacturing costs - direct materials, direct labor, and variable manufacturing overheads - in product costs.

Variable Costs

Costs that change in proportion to the level of production or business activity.