Which of the Following Is NOT an Implication of the Scale

question 13

Multiple Choice

Which of the following is NOT an implication of the scale of operations effect?

• A) The optimal hierarchical structure is pyramidal in shape.
• B) The closer a worker is to the top of the hierarchy the greater the impact of his performance.
• C) The distribution of earnings is skewed to the left.
• D) Higher-ability workers are optimally placed at the top of the hierarchy.
• E) There is an unequal number of workers at each level.

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Definitions:

Salaries Payable

An account that records the amounts owed to employees for work performed that has not yet been paid.

Social Security Tax

A tax that both employers and employees pay to fund the Social Security program, which provides benefits for retirees, disabled workers, and survivors.

Unfunded Pension Liability

The gap between the projected benefits of a pension plan and the assets available to fund those benefits.

Pension Rights

The entitlements that employees accumulate over time that entitle them to receive benefits from a pension plan upon retirement.