Which of the Following Is True Regarding Penny's Assertion That

question 10

Multiple Choice

Which of the following is true regarding Penny's assertion that the union must obtain favorable votes from a majority of employees before winning an election and becoming certified as the bargaining agent for the employees?

• A) Penny is correct because in order to be certified as the bargaining agent, the union must obtain favorable votes from a majority of employees, not a majority of employees who vote.
• B) Penny is correct in that the union will not immediately be certified without a favorable vote from a majority of employees, but a second election will automatically be held at which all employees will be required to vote.
• C) Penny is correct only because her company had 50 or fewer employees. Otherwise, the union would have been certified as the bargaining agent for the employees.
• D) Penny is incorrect because her company had over 25 employees, and the union will be certified as the bargaining agent for the employees.
• E) Penny is incorrect.

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Definitions:

Direct Materials Price Variance

The difference between the actual cost of materials used in production and the expected (standard) cost, indicating how effectively a company controls its raw material expenses.

Standard Labor Hours

The anticipated amount of time required to produce a unit of output under normal conditions, used in budgeting and variance analysis.

Direct Labor Time Variance

The difference between the actual hours worked and the standard hours expected, multiplied by the standard labor rate.

Actual Costs

The real costs incurred corresponding to specific operations or transactions, as opposed to estimated or budgeted costs.