When Deciding Whether to Add or Delete a Department,managers Should

question 130

Multiple Choice

When deciding whether to add or delete a department,managers should keep the department as long as ________ from the department exceeds ________.

• A) contribution margin; variable costs
• B) contribution margin; common costs
• C) contribution margin; avoidable fixed costs
• D) contribution margin; unavoidable fixed costs

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Definitions:

Labor Union

An organized association of workers formed to protect and further their rights and interests regarding wages, benefits, and working conditions.

Negotiations

The process in which two or more parties discuss an issue with the goal of reaching a mutually acceptable agreement.

National Labor Relations Board

An independent US agency that enforces the NLRA by addressing labor disputes and ensuring fair labor practices.

Collective Bargaining Agreement

A legally binding contract negotiated between a union and an employer that outlines wages, hours, and working conditions.