When Representatives of Ford's Management and Autoworkers Union Meet to Negotiate

question 84

Multiple Choice

When representatives of Ford's management and autoworkers union meet to negotiate a labor agreement,which of the following is most likely occurring?

• A) certification
• B) union salting
• C) featherbedding
• D) decertification
• E) collective bargaining

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Definitions:

Common Fixed Expense

Costs that do not change with the level of production or sales within a certain range, and are shared across multiple departments or products.

Variable Costing

A costing method that includes only variable manufacturing costs - direct materials, direct labor, and variable manufacturing overhead - in the cost of goods sold.

Absorption Costing

In this method of accounting, the price of manufacturing a product is calculated by summing the costs of direct materials, direct labor, and all manufacturing overheads, variable and fixed alike.

Fixed Manufacturing Overhead

The total of all costs related to manufacturing that do not change with the level of production, such as salaries of managers and rent of the factory.