What Is NOT an Advantage of Outsourcing the Compensation Function

question 1

Multiple Choice

What is NOT an advantage of outsourcing the compensation function?

• A) cost savings from economies of scale
• B) expertise provided by outside personnel
• C) in-house managers may be able to spend more time focusing on strategic issues
• D) increased internal capacity to understand the compensation system

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Definitions:

Ending Inventory

The total value of all unsold goods that a company has in its possession at the end of an accounting period.

Periodic Inventory

An inventory accounting system where inventory levels and cost of goods sold are determined at the end of an accounting period.

Perpetual Inventory System

An accounting approach to continuously track inventory levels, purchases, and sales, updating the inventory records in real-time.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated using either a periodic or perpetual inventory system.