Which of the Following Is a Disadvantage of Employing Temporary

question 20

Multiple Choice

Which of the following is a disadvantage of employing temporary workers as a means of eliminating a labor shortage?

• A)The use of temporary workers adds up to many administrative tasks and financial burdens associated with being the "employer of record."
• B)Temporary workers pose no threat to current employees, which makes the overall environment less competitive.
• C)The low levels of commitment to the organization and its customers that temporary workers bring with them often reduces the level of customer loyalty.
• D)Many temporary agencies train employees prior to sending them over to employers, which often means that the company has to retrain them in accord with its own standards.
• E)Because temporary workers have little experience in the host firm, the objective perspective they bring is of no value.

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Definitions:

Total Variable Cost

The sum of all costs that vary with the level of output, including things like raw materials, labor costs that vary with production volume.

Output Increases

A situation where a firm or economy produces a greater quantity of goods or services.

Total Variable Cost

The sum of expenses that vary directly with the level of production output, excluding any fixed costs.

Marginal Cost

The additional cost incurred from producing one more unit of a product or service.