Which of the Following Is Not a Lower-Cost Benefit of an Internal

question 36

Multiple Choice

Which of the following is not a lower-cost benefit of an internal labor market?

• A)Promoting only insiders to higher-level jobs
• B)The development of firm-specific human capital
• C)The cultivation of long-term employee motivation
• D)Management's ability to learn about employees' best attributes

Calculate and interpret the turnover ratio within the context of ROI.

Recognize the effects of new investments on a company's overall financial performance.

Apply the concepts of ROI and residual income in real-world divisional performance evaluation scenarios.

Understand the concept of residual income and how it's calculated for a division.

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Definitions:

Standard Cost Variances

The differences between actual costs and standard costs in manufacturing, divided into categories such as materials, labor, and overhead.

Administrative Expenses

Overhead or general expenses related to the day-to-day operations of a business that are not directly tied to a specific project.

Fixed Manufacturing Overhead

The consistent, non-variable costs associated with manufacturing products, such as salaries and rent for factory premises.

Direct Labor Costs

Costs that are directly associated with the production of goods, such as wages paid to manufacturing staff.