Which of the following determines future staff needs by using ratios between a causal factor and the number of employees required?

Question

Quizplus · Accepted Answer

A)A ratio analysis is a forecasting technique for determining future staff needs by using ratios between, for example, sales volume and the number of employees required. For example, if a salesperson usually generates $500,000 in sales, and a firm hopes to produce an extra $3 million in sales, then six new salespeople would need to be hired.

Which of the Following Determines Future Staff Needs by Using