The Bargaining Theory of Wages:
The bargaining theory of wages takes note of persuade of trade unions on wages via collective bargaining. According to this theory, the level of wages in an industry based on the bargaining strength of trade union concerned. The strength of a trade union based on many things such as the size of its membership, the size of its “fighting fund”, and its capability to cause displacement in the industry and the economy via strike. Throughout periods of full employment and good trade, trade unions will be in a strong position and during depression marked by bad trade and mass unemployment; trade unions will be in the weak position.
A trade union might increase wages by limiting the supply of labor. For illustration, it might insist that merely members of a trade union must be employed. This is termed as closed shop policy. It might threaten that it will go on strike when a minimum wage is not paid.
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It is essential to understand the variation between the costing methods and techniques. Costing methods are those that assist a firm to calculate the cost of production or services offered by it.
It is importance asking why cash is so important. Nevertheless, the cash is just an asset that the business requires to assist it to function. In that sense, it is no dissimilar from inventories or non-current assets.
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