Cost-Volume-Profit Analysis Is Not Appropriate for Service Businesses

question 57

True/False

Cost-volume-profit analysis is not appropriate for service businesses.

---

Definitions:

Rand Formula

A labor union policy that mandates all workers in a bargaining unit to pay union dues, regardless of union membership, to ensure collective bargaining benefits for all.

Check-Off Provision

A contractual arrangement where an employer automatically deducts union dues from employees' paychecks and transfers them to the union.

Fiduciary Duty

An obligation to act in the best interest of another party, typically where a relationship of trust and confidence exists, such as between a trustee and beneficiary.

Restrictive Covenant

A clause in a contract which limits certain actions of one or both parties, often used in employment and real estate agreements to protect business interests.