In a Decision Relating to the Possible Elimination of a Department

question 12

Multiple Choice

In a decision relating to the possible elimination of a department consideration needs to be given to all of the following except:

• A)Alternative uses of the space currently occupied
• B)Adverse effects of the elimination on sales of other departments
• C)Whether all of the direct operating expenses are avoidable
• D)Unavoidable expenses

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Definitions:

Pension Plans

Retirement plans that require an employer to contribute to a pool of funds set aside for an employee's future benefit.

Employee Services

Various support services provided by employers to enhance the well-being and productivity of their workforce, such as health care, counseling, and transportation.

Flexible Versus Fixed Benefits

A comparison between two types of benefits; flexible benefits can be tailored to individual needs, while fixed benefits are standardized and not changeable.

Health Care Spending Account

A tax-advantaged account that employees can use to pay for eligible health care expenses not covered by insurance.