What Is Contingency Planning, and Why Is It Important

question 45

Essay

What is contingency planning, and why is it important?

Recognize strategies to address workforce aging and retirement.

Understand the approaches to lower labor costs and their impacts on organizations.

Grasp the concept of offshoring and its implications for HRM.

Understand the role and competencies of HR professionals in building skilled workforces.

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Definitions:

Product Costs

The three components of manufacturing cost: direct materials, direct labor, and factory overhead costs.

Standard Cost

A detailed estimate of what a product should cost.

Past Cost Data

Historical financial information regarding the costs incurred by a business.

Ideal Standards

Standards that can be achieved only under perfect operating conditions, such as no idle time, no machine breakdowns, and no materials spoilage; also called theoretical standards.