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In Assessing and Documenting the Validity of Its Selection Practices

question 47

Multiple Choice

In assessing and documenting the validity of its selection practices, an organization that demonstrates that it followed proper procedures in the development and use of its selection devices is said to follow a ____ strategy.


Definitions:

Incremental Manufacturing Cost

The extra expense associated with manufacturing an additional unit of a product.

Contribution Margin

The amount remaining from sales revenue after variable expenses are subtracted, contributing towards covering fixed costs and profit.

Variable Selling Expenses

Costs that fluctuate with the level of sales, such as commissions or shipping fees.

Variable Administrative Expenses

Expenses that vary with the level of business activity, such as sales commissions or supply costs.

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