When a Company Faces a Shortage of Employees in the Workforce,and

question 81

Multiple Choice

When a company faces a shortage of employees in the workforce,and it predicts that current demand for products or services may not extend to the future,it will

• A)try to garner more hours out of the existing labor force.
• B)recruit and train new employees.
• C)be willing to hire part-time employees.
• D)decrease the production rate by half to meet quality standards.
• E)lease out its machinery to other factories,thereby maintaining income.

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Definitions:

Residual Value

It is the estimated amount that an asset is expected to realize at the end of its useful life after deducting all costs associated with its disposal.

Depreciation

The methodical distribution of a physical asset's cost over its lifetime, indicating its usage, deterioration, or becoming outdated.

Fixed Asset Turnover

A financial ratio that measures a company's ability to generate net sales from its fixed-asset investments, such as property, plant, and equipment.

Favorable Trend

A pattern or movement in financial metrics indicating positive progress or improvement.