Critics of the WARN Act Argue That Employees Should Not

question 113

Multiple Choice

Critics of the WARN Act argue that employees should not be given notification because:

• A) litigation is more likely to occur.
• B) employees will demand more pay.
• C) employee productivity is likely to decline.
• D) competitors may try to hire departing workers.

---

Definitions:

Predetermined Overhead Rate

A rate calculated before the accounting period begins, used to allocate manufacturing overhead costs to individual units of production.

Actual Overhead

The actual costs incurred for indirect materials, indirect labor, and other expenses that cannot be directly traced to products or services.

Direct Labor Cost

The total cost of all the labor directly involved in the production of goods or services, not including indirect expenses like administration.

Direct Labor Cost

The expense incurred from employing workers who directly work on a company's products or services, which can be directly accounted for.