When Calculating the Costs and Benefits of a Training Program

question 9

Multiple Choice

When calculating the costs and benefits of a training program, which of the following is NOT a factor to be taken into account ?

• A)trainer's salary if the trainer is an employee of the organization
• B)opportunity cost of trainees being away from work
• C)hotel and food expenses for trainees if training is off-site
• D)reduction in morale of employees not selected for training

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Definitions:

Debt Financing

A method of funding where a company raises capital through borrowing, typically from institutional sources or by issuing bonds.

Return On Equity

A measure of financial performance calculated by dividing net income by shareholders' equity, indicating how efficiently a company uses investments to generate earnings growth.

Contract Rate

The agreed-upon interest rate specified in a loan or bond contract.

Market Rate

The prevailing interest rate available in the marketplace or the typical price of a good or service in the open market.