When a Company Uses an Activity-Based Management System to Reduce

question 14

True/False

When a company uses an activity-based management system to reduce costs, the first step in the process is to determine the real causes of the costs.

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Definitions:

Severance Payments

Compensation provided to employees upon dismissal or termination from a company that is usually based on length of service.

Dismissed Executives

Senior employees who have been removed from their positions within a company, often due to performance issues, restructuring, or changes in strategic direction.

Lag The Market

A compensation strategy where an organization deliberately sets wage levels below the average market rate, often due to financial constraints or strategic choice.

Compensation Strategy

A plan established by an organization to determine how to reward employees effectively, taking into account salaries, benefits, bonuses, and other forms of compensation.