What May Be a Consequence of Laws on Labor Unions

question 126

Multiple Choice

What may be a consequence of laws on labor unions and employment in Western Europe that make it difficult to terminate employees?

• A) succession planning becomes less relevant
• B) employee compensation decreases
• C) companies may choose to hire many employees
• D) companies may be reluctant to hire many employees

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Definitions:

Direct Labor-Hours

A measure of the total hours worked by employees directly involved in the production process, used for costing and efficiency analysis.

Manufacturing Overhead

All indirect costs associated with manufacturing, excluding direct materials and direct labor, such as utilities, depreciation, and maintenance of factory equipment.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to products or services.

Manufacturing Cost

All expenses directly related to the production of goods, including raw materials, labor, and factory overhead.