Which of the Following Best Explains Why Current Employers Do

question 41

Multiple Choice

Which of the following best explains why current employers do not seem to reduce wages for existing employees in the short term when the supply for a particular set of skills far outstrips the demand?

• A) because of the wage compression phenomenon
• B) because of the negative impact on performance and increased turnover
• C) because labour budgets tend to be determined on an annual basis
• D) because fewer potential employees tend to put upwards pressure on wages

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Definitions:

Double Declining-balance

A method of accelerated depreciation that doubles the straight-line depreciation rate.

Depreciation Expense

This refers to the allocation of the cost of a tangible asset over its useful life, representing how much of the asset's value has been used up during a fiscal period.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against an asset since it was put into service.

Straight-line Method

An accounting method for calculating depreciation by evenly distributing the cost of an asset over its useful life.