Which of the Following Is an Effective Practice in Downsizing

question 73

Multiple Choice

Which of the following is an effective practice in downsizing?

• A) Hire people that can cope with the new situation.
• B) Make slow, small, frequent layoffs.
• C) Expect higher productivity from retained employees.
• D) Communicate constantly with people about the process.
• E) Implement voluntary early retirement.

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Definitions:

Predetermined Overhead Rate

A rate used to allocate estimated overhead costs to products or services, based on a chosen activity base like labor hours or machine hours.

Direct Labor-Hours

The total number of hours worked by employees that are directly involved in the manufacturing process.

Predetermined Overhead Rate

A calculated rate used to allocate manufacturing overhead costs to products or job orders, based on a projected level of activity.

Direct Labor-Hours

The total number of labor hours worked by employees who are directly involved in the manufacturing process.