Describe the key similarities and differences between the bargaining environment for the public and private sectors.

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The dimension of the bargaining environment are the same for public and private sector employers but there are some key differences within a given factor. For example, both sectors are influenced by laws but the laws that govern public sector bargaining are different from those governing private sector bargaining. Similarly, a tight or loose labor market will affect public and private sector bargaining in the same way. The key differences between them have to do with the nature of the services provided by public sector workers. First, it is more difficult to privatize or outsource certain services provided in the public sector (e.g., police and firefighting). Second, the level and kind of public services that are provided to constituents (consumers) is determined primarily through the political process and not through participation. The government may, for example, determine that certain services are necessary even though it is not in great demand by a majority of constituents (e.g., new schools, road repairs in low traffic areas).

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Regarding the contribution-margin approach to marketing cost analysis, which of the following statements is true?

A. This approach may suggest a different action than the full-cost approach. B. This approach stresses the need for evaluating fixed costs. C. The total net profit obtained with this approach is different from that obtained using the full-cost approach. D. It is concerned with the amount contributed by a product or customer toward covering variable costs-after fixed costs have been covered. E. All these statements are true.

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Implicit services are not part of the service package.

Answer the following statement true (T) or false (F)

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A manufacturing company has a standard costing system based on standard direct labor-hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: Denominator level of activity 8000?DLHsOverhead costs at the denominator activity level:   Variable overhead cost$44,000? Fixed overhead cost$88,000? The following data pertain to operations for the most recent period: Actual hours 8200?DLHsStandard hours allowed for the actual output 7840?DLHsActual total variable manufacturing overhead cost$48,000? Actual total fixed manufacturing overhead cost$86,910? The fixed manufacturing overhead budget variance for the period is closest to:

A. $4000 F B. $3960 U C. $1090 F D. $670 F

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