Which of the Following Is Not a Valid Reason to Deter

question 6

Multiple Choice

Which of the following is not a valid reason to deter the adoption of flexible benefit plans?

• A) high administrative costs
• B) lack of consultant expertise
• C) possible loss of economies of scale
• D) confusion and poor decision making among employees

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Definitions:

Total Cost

The aggregate sum of all expenses associated with producing a good or providing a service, including fixed and variable costs.

Variable Costs

Expenses that vary directly with the level of production or sales volume.

Production

Use of resources, such as people and machinery, to convert materials into finished goods and services.

Inflexible

Lacking the ability to adapt or change according to different situations, conditions, or demands; rigid in approach or structure.