Each of the Following Statements About HRP Is True Except

question 30

Multiple Choice

Each of the following statements about HRP is true except that

• A)it is also known as employment planning.
• B)a fundamental HRP decision when demand exceeds supply is whether projected positions will be filled externally or internally.
• C)it is a reactive process.
• D)a critical HRP issue is what to do when the labour supply exceeds the anticipated demand.
• E)it can lead to significant costs if done poorly.

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Definitions:

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue is available to cover fixed costs and generate profit.

Variable Cost

Costs that change in proportion to the level of activity or volume of production, such as materials and labor.

Cost of Goods Sold

The total cost directly associated with producing the goods sold by a business during a specific period, including labor, materials, and manufacturing overhead.

Product Costs

The costs directly associated with producing goods, including direct materials, direct labor, and manufacturing overhead.