When Faced with a Labor Deficit, an Organization Is Mostly

question 107

Multiple Choice

When faced with a labor deficit, an organization is mostly likely to

• A) make use of attrition to reduce the surplus.
• B) outsource work to contractors.
• C) offer outplacement to its employees.
• D) begin downsizing.
• E) lay off people for poor performance.

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Definitions:

Cost of Goods Sold

Direct costs attributable to the production of the goods sold by a company, including the cost of materials and labor.

Periodic Inventory System

A method of inventory management where updates to inventory levels are made at specific intervals, typically at the end of an accounting period, rather than continuously.

Inventory Shipped on Consignment

Goods sent by a vendor (consignor) to a consignee, which are held by the consignee until sold; the consignor retains ownership until the goods are sold.