The Audit Approach to Evaluating the Effectiveness of HR Practices

question 71

Multiple Choice

The audit approach to evaluating the effectiveness of HR practices focuses on

• A)using analytical data to increase organizational effectiveness.
• B)estimating the costs and benefits resulting from an HR practice.
• C)reviewing the various outcomes of the HR functional area.
• D)determining the dollar value of a program.
• E)using utility analysis to estimate the financial impact of employee behavior.

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Definitions:

Net Sales

The revenue a company makes after subtracting the costs for returns, compensation for damaged or missing items, and any permitted discounts.

Gross Profit

The disparity between income generated and the expenses incurred in producing a product or delivering a service, prior to subtracting costs for overheads, employee salaries, taxes, and interest expenses.

Sales Discounts

Reductions granted from the listed price of goods or services, often used as a marketing strategy to encourage early payment or increase sales volume.

2/10, N/30

A payment term indicating that a buyer can take a 2% discount on the invoice amount if payment is made within 10 days; otherwise, the net amount is due in 30 days.