In the Context of an HRM Audit, Average Unemployment Compensation

question 119

Multiple Choice

In the context of an HRM audit, average unemployment compensation payment primarily serves as a vital business indicator for activities related to

• A) staffing.
• B) training.
• C) employee appraisals.
• D) benefits.
• E) recruitment.

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Definitions:

EBIT

Earnings Before Interest and Taxes, a financial measure that calculates a company's profitability based on its operations without the effects of interest and taxes.

Contribution Margin

The selling price per unit minus the variable cost per unit, used to cover fixed costs and to generate profit.

Breakeven

The point at which total costs and total revenue are equal, resulting in no net loss or gain for a business.

DFL

Degree of Financial Leverage, a ratio that measures the sensitivity of a company's earnings per share (EPS) to fluctuations in its operating income due to changes in its capital structure.