Promoting from Within the Company Often Is a Cost Effective

question 154

True/False

Promoting from within the company often is a cost effective way of filling positions within a firm because the employees filling the position are already familiar with the organization's culture and procedures.

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Definitions:

Direct Labour

The work done by employees directly involved in manufacturing a product or delivering a service, typically accounted for as a variable cost.

Direct Materials

Raw materials that can be directly traced to the manufacturing of a product in a cost-effective manner.

Manufacturing Overheads

Indirect costs related to manufacturing that cannot be directly traced to specific products, including utilities, maintenance, and factory equipment depreciation.

Work-in-Process Inventory

Items that are partially completed in the production process; they are not yet finished goods but are no longer raw materials.