As Director of HR You Need to Calculate the Return

question 23

Multiple Choice

As director of HR you need to calculate the return on investment of a new differential piece-rate system.To do this you need to calculate

• A) the ratio of the cost of the old incentive system to the cost of the new incentive system multiplied by the dollar value of the increase in production due to the new system.
• B) the dollar value of the increase in production divided by the cost of the new incentive system.
• C) the ratio of the cost savings of the new incentive system compared with the return on investment which the shareholders expect.
• D) the dollar value of the additional production minus the cost of the new incentive system divided by the cost of the new incentive system

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Definitions:

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