In Which of the Following Ways May Staffing Practices Change

question 47

Multiple Choice

In which of the following ways may staffing practices change in response to benefit cost controls?

• A)Increasing benefit costs per hour by having employees work more hours with fixed benefit costs
• B)Classifying employees as contractors rather than employees
• C)Increasing the number of full-time workers
• D)Rehiring previously laid off employees
• E)Paying temporary workers for time not spent working

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Definitions:

Fixed Components

The elements of a business's costs that remain constant regardless of the level of production or sales activity.

Contribution Margin

The amount by which sales income exceeds variable expenses, which is utilized to pay off fixed expenses and create profit.

Variable Costs

Expenses that vary in direct proportion to changes in production or sales volume, such as raw materials and direct labor costs.

Sales

Revenue generated from goods or services exchanged by an entity during its normal business operations.