A caution about cost cutting is that it can lead to
A) low morale and lower quality goods and services.
B) the image of a cheap company
C) both a & b
D) increase the cost of supplies

Question

Quizplus · Accepted Answer

Cost cutting measures can often lead to low morale among employees who may feel undervalued, overworked or underpaid. This can result in a decrease in the quality of goods and services provided by the company. Additionally, if cost cutting measures become too extreme, it can create a perception among consumers that the company is "cheap" or that it is no longer investing in providing high-quality products or services. Therefore, both A and B are potential risks associated with cost cutting. The option D, increase in the cost of supplies, is not directly related to cost-cutting measures.

A Caution About Cost Cutting Is That It Can Lead