Companies That View Their Human Resource Function as a Strategic

question 48

Multiple Choice

Companies that view their human resource function as a strategic asset should NOT evaluate HR effectiveness by investigating

• A) costs and benefits.
• B) organizational outcomes such as productivity.
• C) profitability.
• D) costs as the only factor.
• E) utility analysis.

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Definitions:

Operating Income

This is the profit realized from a business's operations, calculated by subtracting operating expenses from gross profit.

Total Contribution Margin

The difference between total sales revenue and total variable costs, indicating the amount available to cover fixed expenses and generate profit.

Operating Leverage

A measure of how sensitive net operating income is to a given percentage change in revenue, indicating the proportion of fixed versus variable costs.

Income Statement

A financial report that shows a company's revenues, expenses, and profit or loss over a specific period.