Answer:
(a) Firms could possibly respond to unions demands for higher wages by hiring fewer workers.
(b) Firms could possibly respond to unions demands for higher wages by substituting capital for labor.
Explanation:
Unions are formed to work toward better working conditions and welfare of staff.
Workers act collectively to negotiate better terms of employment with the employers.
However when unions try to negotiate for increased pay the employer may take different actions that will bad for the employee.
The employer may decide to actually pay the higher wage but hire fewer workers. This is usually the case when higher wages for many employees will result in loss for the employer.
Secondly the employer may substitute capital for labour. For example investing more in use of machines and reducing labour.
From the employer's viewpoint this will result in lower labour cost due to higher wage payment
Answer:
b. Added to gross wages to calculate Total job Benefits
Explanation:
Employee benefits are incentives offered by employers on top of their regular salaries. Examples of benefits include medical insurance, bonuses, allowances, vacations, educational benefits, among others. These benefits are also known as fringe benefits.
Employee benefits are subject to tax. When calculating an employee's total gross pay, benefits are added to the regular pay to get the total earnings by the employee.
Answer:
Cost of purchasing the shares = 180 x $13 = $2,340
Commission = 3% x $2,340 = $70.20
Explanation:
In this case, we need to calculate the cost of purchasing the shares. Thereafter, we will calculate commission based on 3% load (3% of $2,340).
Answer:
Make sure that your work is properly marked
Explanation:
<u>Explanation:</u>
Payables control accounts helps to maintain each supplier account as a separate subsidiary ledger and reducing the amount of postings in the general ledger. Receivables control account is useful to maintain the credit sales through separate subsidiary ledger.
When there is a control account then the the trial balance of the firm can be easily prepared by seeing the general ledger.
Book keeping errors can also be identified by reconciling the balance on accounts payable and general ledger accounts.
