If Employees Accept a Wage Contract That Decreases the Unit

question 134

True/False

If employees accept a wage contract that decreases the unit contribution margin, the break-even point will decrease.

---

Definitions:

Performance Reports

Documents that review and assess the performance of individuals, departments, or organizations against planned objectives.

Cost Centers

Parts of an organization where costs are accumulated for internal accounting purposes but do not directly generate revenue.

Flexible Budget Data

Financial information that adjusts based on changes in activity levels, often used for performance evaluation.

Profit Center

A branch or division of a company that is treated as a separate unit for the purpose of assessing its profitability.