Charlene, the director of compensation, wishes to estimate the administrative costs of the current benefits program so that she can use that as a basis for evaluating new administrative methods. Which of the following is a calculation Charlene needs to make?

Question

Quizplus · Accepted Answer

To estimate administrative costs, Charlene would need to calculate the HR staff time spent on benefit issues and multiply it by their pay to determine the total cost of administering benefits. Option B is only relevant to the actual cost of benefits, while option C is a historical analysis rather than a basis for future planning. Option D is related to benefits usage, and while it could be useful information, it is not directly related to estimating administrative costs.

Charlene, the Director of Compensation, Wishes to Estimate the Administrative