The Key to Ratio Analysis Is Assessing Each Promotable Employee

question 95

True/False

The key to ratio analysis is assessing each promotable employee for KSAO or competency gaps, and where there are gaps, creating employee training and development plans that will close the gap.

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Definitions:

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.

Inverted U-Theory

A hypothesis that suggests a relationship between any given variable and a factor of interest initially increases, reaches an optimal level, then declines.

R&D Expenditures

Refers to spending on research and development activities by governments, businesses, or other organizations to innovate or improve products and services.

Economies of Scale

The economic benefits companies achieve through expanding their scale of activity, as the cost for every unit of output falls with the growth in scale.