Assume the Multiplier Method Is Used and the Multiplier Is

question 65

Multiple Choice

Assume the multiplier method is used and the multiplier is determined to be 3 based on experience. Accounting records show that the measured external failure costs are $400,000. Then the hidden external failure costs are estimated to be

• A)$133,334.
• B)$400,000.
• C)$800,000.
• D)$1,200,000.

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Definitions:

HRM Evaluation

The process of examining and assessing the effectiveness of Human Resource Management practices and policies in achieving organizational goals.

Predicts Future

The act of forecasting or estimating future trends, behaviors, or events based on current or past data.

Labour Expenses

The total costs incurred by an organization in compensating its employees, including salaries, benefits, and other related expenses.

Labour Force

The total number of people employed or actively looking for employment in a specific area or economy.