In Most Cases, It Is More Cost Effective for Firms

question 109

True/False

In most cases, it is more cost effective for firms to hire contingent workers through a temp agency than to hire comparable permanent employees.

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Definitions:

Productive Capacity

The maximum output a system can produce in a specific period under normal working conditions.

Milling Machine

A machine tool used to machine solid materials by removing material in the form of chips using a rotating cutting tool.

Direct Labor Hours

The amount of time workers spend directly manufacturing a product or providing a service, used to allocate labor costs in production.

Variable Selling

Costs related to selling that vary with sales activity, such as sales commission.