In Change Competency: the Collapse of the Auto Market in 2008

question 34

Multiple Choice

In Change Competency: The collapse of the auto market in 2008 and 2009 forced GM and UAW members to the bargaining table. What is the best way to describe these negotiations?

• A) It took many months to come to an agreement because neither side was willing to negotiate.
• B) UAW and GM are still in negotiations, more than ten years later.
• C) Agreement was reached that favored GM but ignored the needs of the UAW.
• D) Agreement was reached without the lengthy battles observed in previous negotiations.

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Definitions:

Direct Materials

These are specified components that can be easily identified and measured as part of the cost of creating a product or service.

Normal Standards

Performance benchmarks or criteria that are established based on average or anticipated conditions for the purpose of budgeting and cost control.

Labour Efficiency Variance

A measure that calculates the difference between the expected labor hours to produce an output and the actual hours used.

Poor Quality Materials

Materials that do not meet the required standards or specifications, potentially leading to failures in production or the final product.