A Firm Achieves External Competitiveness When Its Employees Perceive That

question 67

True/False

A firm achieves external competitiveness when its employees perceive that their pay is fair in relation to what each of them contributes to the firm.

---

Definitions:

Overhead Cost

All indirect costs associated with running a business that cannot be directly attributed to a specific product or service, such as rent, utilities, and administrative expenses.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing more accurate costing information.

Product B

An arbitrary term that could refer to any second product offered by a company in a given context.

Direct Labor-Hours

The total hours worked by employees directly involved in manufacturing a product, often used as a basis for allocating costs.