According to a Study of Downsizing in the U

question 18

Multiple Choice

According to a study of downsizing in the U.S.automobile-related industry,all of the following are problems associated with inappropriate downsizing EXCEPT

• A) outsourcing was eliminated.
• B) blanket offers for early retirement prompted even valuable employees to leave.
• C) surviving employees experienced decreased morale.
• D) surviving employees had to do extra work in addition to their own.
• E) the wrong jobs were eliminated.

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Definitions:

Defective Merchandise

Products that are found to have flaws or faults which impair their functionality, appearance, or intended use.

Periodic Inventory System

An inventory system that updates inventory and cost of goods sold records at the end of an accounting period.

Gross Method

An accounting practice for recording inventory purchases without deducting any purchase discounts, which are recorded only if they are actually taken.

Terms 2/10, N/60

A trade credit term where a buyer can deduct 2% from the invoice amount if payment is made within 10 days; otherwise, the full invoice amount is due in 60 days.