As director of HR you need to calculate the return on investment of a new differential piece-rate system.To do this you need to calculate
A) the ratio of the cost of the old incentive system to the cost of the new incentive system multiplied by the dollar value of the increase in production due to the new system.
B) the dollar value of the increase in production divided by the cost of the new incentive system.
C) the ratio of the cost savings of the new incentive system compared with the return on investment which the shareholders expect.
D) the dollar value of the additional production minus the cost of the new incentive system divided by the cost of the new incentive system

Question

Quizplus · Accepted Answer

The correct calculation for the return on investment (ROI) of a new differential piece-rate system involves subtracting the cost of the new system from the dollar value of the additional production it generates, and then dividing this figure by the cost of the new system. This formula accurately reflects the net gain or return relative to the investment made in the new system.

As Director of HR You Need to Calculate the Return