Some Employers No Longer Consider a Prospective Employee's Grade Point

question 94

Multiple Choice

Some employers no longer consider a prospective employee's grade point average as a useful signal. Why might this be the case?

• A) because only the really smart students receive high grade-point averages
• B) because grade inflation has made it considerably easier for students with a poor work ethic and little self-control to get high grades
• C) because it is not fair to the students who put in a lot of effort and still get bad grades
• D) because productivity is highly correlated with a worker's grade-point average

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Cost-volume-profit Analysis

An accounting technique used to determine how changes in costs, sales volume, and price affect a company's profit.

Cost-volume-profit Analysis

An accounting method used to determine how changes in costs and volume affect a company's operating income and net income.

Fixed Costs

Expenses that do not change significantly with the level of business activity, such as rent, salaries, and loan payments.