Which of the Following Is NOT a Potential Problem with Headcount

question 39

Multiple Choice

Which of the following is NOT a potential problem with headcount reductions?

• A)Regulatory requirements make it difficult to make targeted cuts.
• B)Workforce reductions, especially if not handled well, can harm employee relations.
• C)Organizations that make greater involuntary workforce reductions also experience greater voluntary turnover.
• D)RIFs are very costly in tangible terms in the long run due to decreases in unemployment insurance tax rate.

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Definitions:

Activity Level

The volume of production or the degree of services provided by a business, which can impact the behavior of costs and is critical in budgeting and planning.

Product Costs

Direct and indirect costs associated with producing a product, including materials, labor, and overhead expenses.

Inventoriable Costs

Costs associated with the purchase or production of goods that are considered assets when incurred and expensed as the goods are sold.

Period Costs

Expenses that are not directly tied to the production of goods and are instead allocated to the time period in which they are incurred.