Which of the Following Is Correct Regarding the Effect of Unions

question 36

Multiple Choice

Which of the following is correct regarding the effect of unions on productivity:

• A)Unions always reduce productivity.
• B)Unions never reduce productivity.
• C)Unions increase productivity in some workplaces.
• D)Unions initially increase productivity and then cause a decline in productivity.
• E)Unions initially decrease productivity and then cause an increase in productivity.

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Definitions:

Direct Labor-Hours

The cumulative number of labor hours directly engaged in manufacturing goods or services.

Materials Price Variance

The difference between the actual cost of materials and the standard cost, multiplied by the quantity of materials purchased.

Variable Manufacturing

Costs in manufacturing that change in proportion to the volume of production, such as materials and labor.

Materials Price Variance

The difference between the actual cost of materials used in production and the budgeted cost of materials, based on standard prices and actual quantities purchased.