One Reason for the Increase in Temporary Employment Arrangements Is

question 147

Multiple Choice

One reason for the increase in temporary employment arrangements is that

• A) more women are in the workforce.
• B) corporations are downsizing and restructuring to remain competitive.
• C) workers are more productive when they are hired on a temporary basis.
• D) none of these.

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Definitions:

Variable Costs

Expenses that change in proportion to the level of production or sales, such as raw materials and labor costs.

Operating Leverage

Operating leverage describes the extent to which a company can increase profits by increasing sales, indicating the proportion of fixed costs to variable costs.

Break-Even Point

The level of output or sales at which a company does not make a profit or loss, but all costs are covered.

Operating Leverage

measures a company's fixed costs relative to its total costs, indicating how a change in sales will affect its operating income.