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Manning Logistics Laid Off 9 Employees from Data-Entry Positions in Its

question 101

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Manning Logistics laid off 9 employees from data-entry positions in its finance division. Two weeks later it hired 15 employees into data-entry positions in the inventory division. What mistake has the company committed?


Definitions:

Vertical Analysis

A method of financial statement analysis in which each entry on a single financial statement is listed as a percentage of another item, typically used to assess relative changes over time within the statement.

Base Year

A specific year or period chosen as a reference point for financial or economic data analysis.

Percent Change

A mathematical calculation that indicates the degree of change over time, represented as a percentage.

Sales

Sales represent the transactions involving the exchange of goods or services for money, reflecting the primary revenue-generating activities of a business.

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