Which of the following is a method companies use to reduce their labor costs?
A)Paying overtime to get a job done in fewer days
B)Offshoring
C)Mandating across the board wage rate decreases
D)Produce more units of product

Question

Quizplus · Accepted Answer

Offshoring is the process of relocating a company's operations to a foreign country to take advantage of lower labor costs. This is a common method used by companies to reduce their labor costs. A, paying overtime, may increase labor costs in the short term. C, mandating wage rate decreases, can result in low employee morale and retention, and may also negatively impact the quality of work. D, producing more units of product, does not necessarily lead to a reduction in labor costs, as it requires additional labor to produce more units.

Which of the Following Is a Method Companies Use to Reduce