Continuance Commitment Exists When the Costs of Leaving the Organization

question 143

True/False

Continuance commitment exists when the costs of leaving the organization (loss of seniority, pensions, medical benefits, and so on) are too great.

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Definitions:

Variable Costs

Expenses that vary directly with the level of production or sales volume, such as raw materials and direct labor costs.

Support Departments

Units within an organization that provide essential services or support to the production or primary activities departments.

Indirect Costs

Expenses that are not directly traceable to a specific product, project, or activity, often including utilities, rent, and administrative salaries.

Responsibility Centres

Sections or divisions of a business for which a manager has authority and responsibility, typically including revenue, expense, profit, and investment centers.