Downsizing costs are concentrated in separation costs for permanent reductions in force.

Question

Quizplus · Accepted Answer

Downsizing often involves laying off employees or reducing the workforce, and the costs associated with this are typically concentrated in separation costs, such as severance pay, outplacement services, and other expenses associated with terminating employees. Other costs associated with downsizing may include consulting fees, potential legal fees, and costs related to reorganizing the business. However, separation costs tend to be the largest and most significant costs associated with downsizing.

Downsizing Costs Are Concentrated in Separation Costs for Permanent Reductions