Trevor,the Human Resource Manager at XTech,is Advising the Company's Business

question 87

Multiple Choice

Trevor,the human resource manager at XTech,is advising the company's business executives that paying more for labor than competitors can support the company's strategy.Under what conditions might Trevor's idea be most valid?

• A) XTech pays more to attract top talent,applying employees' knowledge to be more innovative than competitors.
• B) XTech intends to charge more for than competitors for the same kinds of products.
• C) XTech hopes other companies will eventually match XTech's pay scale.
• D) Labor costs are a large part of XTech's total costs.
• E) XTech is developing a low-price strategy that will generate more sales.

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Definitions:

Total Costs

The total of all costs associated with manufacturing goods or providing services, encompassing both fixed and variable expenses.

Total Variable Costs

The overall expenses that change in proportion to the activity of a business, such as production volume or units of service delivered.

Total Fixed Costs

The sum of all costs that remain constant regardless of the level of production or output within a specific period.

Total Variable Costs

The sum of all costs that vary directly with the level of production or output, excluding fixed costs.