Bill Tarnofsky Makes the Following Statement: "We Must Become More

question 51

Short Answer

Bill Tarnofsky makes the following statement: "We must become more flexible if we are to meet our personnel needs and maximize efficiency. In the past, we simply hired as many full-time employees as we thought we needed. But this focus has caused us to lose many valuable employees. We should offer flextime and job sharing options to help us keep and attract talented employees."
Margaret Robin responds by saying: "Alternatives to traditional job design approaches can lead to significant cost savings. Next year we are expected to have 500 more employees than our current facility allows, but my analysis reveals that 600 of our employees could telecommute. Therefore, we can avoid costly actions such as moving our offices or building extensions if these workers became telecommuters. Job sharing can also reduce facility costs as well as payroll costs."
If Robin's statements are all true, which of the following must also be true?
If the organization is forced to relocate its offices next year, then the number of telecommuters must be fewer than 600.
If the number of telecommuters is more than 600, then the organization will be forced to either move its offices or build an extension.
The organization cannot build an extension and move its office at the same time.
If the number of telecommuters is fewer than 600, then the organization will be forced to either move its offices or build an extension.
The potential cost saving from telecommuting is greater than the potential cost saving from job sharing.

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Definitions:

Current Revenues

Income recognized by a business within its fiscal year, typically from its main operations.

LIFO Cost

An inventory valuation method that assumes the last items placed in inventory are the first sold, implying newer inventory remains unsold.

Periodic Inventory

A method of inventory valuation where updates to the inventory levels and cost of goods sold are made at the end of an accounting period.

Inventory Balance

The total value of a company's inventory at the end of an accounting period, including raw materials, work-in-progress, and finished goods.