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Table 11.3 The Employees Are in a Contract Negotiation with Your Company

question 21

Multiple Choice

Table 11.3
The employees are in a contract negotiation with your company and you represent management. You are concerned with maximizing the results for both sides, while the union is focused on getting the best wages and working conditions possible, regardless of the cost to you. During a coffee break the union negotiator tells you he understands where you are coming from but there's only so much money to go around, and his people want as much as possible. Back at the table, you ask the union negotiator if he would put the retirement plan and health care plan on the table as well so you could make an offer to increase their wages. He refuses. Three months go by with no progress. You suggest arbitration by a third party. The union agrees only if both sides must accept what the arbitrator offers. You agree.
-Refer to Table 11.3. You have a/an ________ orientation to the bargaining process.

Definitions:

Variable Costing

A costing method where only variable costs are considered when determining the cost of goods sold, excluding fixed overhead.

Operating Income

The profit produced from a company's regular business operations, excluding non-operating income and expenses like interest and taxes.

Year 1

Typically, refers to the first year in a given context, such as the first year of operations, first fiscal year, or first year of data collection.

Operating Income

The profit earned from a firm's normal core business operations, calculated before the deduction of interest and taxes.