Which of the Following Statements Is True of a Personnel

question 167

Multiple Choice

Which of the following statements is true of a personnel information system (PIS) in an organization?

• A) It helps make decisions related to allocating human and financial resources.
• B) It helps make decisions related to reducing the cost of transporting materials.
• C) It helps make decisions related to increasing product quality.
• D) It helps make decisions related to minimizing capital investment risks.

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Definitions:

Contribution Margin Ratio

A measure that shows the percentage of sales revenue that exceeds the variable costs of production.

Variable Costs

Variable costs are expenses that change in proportion to the activity of a business, such as raw material costs, which vary with production volume.

Fixed Costs

Expenses that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.

Break-Even Point

The level of production or sales at which total revenues equal total expenses, resulting in no net profit or loss.