Reorganizing in Order to Compete Better May Require a Business

question 292

True/False

Reorganizing in order to compete better may require a business to reduce its labor force.
Companies reorganize in order to be more competitive and reduce costs.In order to reduce costs,the firm may reduce its labor force,and reorganize the jobs and activities to those workers who remain.

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Definitions:

Estimated Annual Costs

A forecast of the total costs a company expects to incur over a year, including fixed and variable expenses.

Expected Annual Activity

The anticipated level of operations or production for a business during a one-year period.

Predetermined Overhead Rate

A rate used to assign manufacturing overhead costs to products or job orders, calculated based on estimated overhead costs and an allocation base.

Direct Labor Cost

The total cost of work done by employees who are directly involved in the manufacturing of a product.