In What Way Does Absenteeism Result in a Direct Cost

question 34

Multiple Choice

In what way does absenteeism result in a direct cost to a business?

• A) Additional training must be provided to coworkers.
• B) Turnover among high quality employees increases.
• C) Burnout and psychological distress increases for those who are on the job.
• D) There is confusion about authority roles within the organization.
• E) A substitute must do the work of the missing employee.

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Definitions:

Required Production

The quantity of goods or services that a company needs to produce within a specific timeframe to meet the demands of its customers.

Material Inventories

Stocks of raw materials, work-in-progress, and finished goods that are held for use in production or sale in the future.

Direct Materials Purchases

The total cost of raw materials bought that are directly incorporated into a finished product.

Ending Direct Materials

Ending Direct Materials refers to the value of raw materials that are still available for use in production at the end of an accounting period.