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Labor costs are the dominant expense of doing business

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Labor costs are the dominant expense of doing business  [#permalink]

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New post 26 Jun 2017, 21:47
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A
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D
E

Difficulty:

  85% (hard)

Question Stats:

49% (02:27) correct 51% (02:31) wrong based on 210 sessions

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Labor costs are the dominant expense of doing business in all but a few endeavors. For most jobs, the variation in individual work-related performance is likely to be greater than the range in compensation; additionally, it is possible to maintain productivity and work quality while decreasing labor costs.
Which of the following must be true on the basis of the statements above?
A. Employers should be more concerned about employee productivity
B. Some employers would be willing to accept employee performance output less than that at the higher range of an employee productivity.
C. No employer should expect an organization's employees to operate at maximum productivity
D. Some employees work at output levels less than at their maximum.
E. Labor costs need to be curtailed to improve the vitality of a nation's economy.

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New post 27 Jun 2017, 05:05
It is D..since it says that the employee productivity is greater than variation in compensation.

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Re: Labor costs are the dominant expense of doing business  [#permalink]

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New post 27 Jun 2017, 06:44
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Skywalker18 wrote:
Labor costs are the dominant expense of doing business in all but a few endeavors. For most jobs, the variation in individual work-related performance is likely to be greater than the range in compensation; additionally, it is possible to maintain productivity and work quality while decreasing labor costs.
Which of the following must be true on the basis of the statements above?
A. Employers should be more concerned about employee productivity
B. Some employers would be willing to accept employee performance output less than that at the higher range of an employee productivity.
C. No employer should expect an organization's employees to operate at maximum productivity
D. Some employees work at output levels less than at their maximum.
E. Labor costs need to be curtailed to improve the vitality of a nation's economy.


Inference question. I chose D. The following is my approach:

A. what employers SHOULD DO cannot be inferred from stimulus. Hence, as per my personal observation, options mentioning "A should do B..." are usually wrong. OUT.

B. Nowhere in the above question could this prediction be inferred. OUT.

C. Another suspicious "SHOULD". Why on earth "No employer should expect an organization's employees to operate at maximum productivity" ??? Even in real life, "maximum productivity" is good, why don't we expect it? Also, "no employee" expression is too extreme. OUT.

D. "the variation in individual work-related performance is likely to be greater than the range in compensation". When working performance is varied, we can absolutely understand that while some employees reach maximum level of output, some work at less than that maximum level. CORRECT.

E. "nation's economy"??? Totally out of scope. OUT.
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Labor costs are the dominant expense of doing business  [#permalink]

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New post Updated on: 15 Jul 2017, 19:33
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Labor costs are the dominant expense of doing business in all but few endeavors. For most jobs, the variation in individual work-related performance is likely to be greater than the range in compensation; additionally, it is possible to maintain productivity and work quality while decreasing labor costs.

Which of the following must be true on the basis of statements above?

A. Employers should be more concerned about employee productivity.

B. Some employers would be willing to accept employee performance output less than that at the higher range of an employee productivity.

C. No employee should expect an organization’s employees to operate at maximum productivity.

D. Some employees work at output levels less than their maximum.

E. Labor costs need to curtailed to improve the vitality of a nation’s economy.
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Originally posted by Gnpth on 15 Jul 2017, 12:29.
Last edited by Vyshak on 15 Jul 2017, 19:33, edited 1 time in total.
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Re: Labor costs are the dominant expense of doing business  [#permalink]

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New post 16 Jul 2017, 04:26
Imo D

But i am still unsure of the answer .
Please post official explanation
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Re: Labor costs are the dominant expense of doing business  [#permalink]

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New post 02 Jan 2018, 02:50
According to the passage,

"For most jobs, the variation in individual work-related performance is likely to be greater than the range in compensation" On the basis of this choice D must be true. Choices A and E is out of scope(need not be true). Choice C is extreme(need not be true). Choice B is interesting. In my opinion this statement isn't related to the passage and hence need not be true. Therefore D is the best choice here. However it would be useful to have a convincing explanation from the experts on choice B.
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Re: Labor costs are the dominant expense of doing business  [#permalink]

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New post 02 Jan 2018, 15:44
IMO OA is D

A. Employers should be more concerned about employee productivity
-> irrelavant. should? Too extreme
B. Some employers would be willing to accept employee performance output less than that at the higher range of an employee productivity.
->: may be or not. We cannot assure. It is up to each emplyer's temper.
C. No employer should expect an organization's employees to operate at maximum productivity
-> may be or not. We cannot assure this.
D. Some employees work at output levels less than at their maximum.
-> Correct
'it is possible to maintain productivity and work quality while decreasing labor costs.'
= We can ssume that some employee would not do their best at work.
E. Labor costs need to be curtailed to improve the vitality of a nation's economy.
-> nation's economy? Out of scope
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Re: Labor costs are the dominant expense of doing business &nbs [#permalink] 02 Jan 2018, 15:44
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