Which of the following is a cost-efficiency measure?
A)time to process compensation and benefits
B)ratio of compensation expense to total operating expense
C)number of training days and number of employees trained
D)number of interviews per selection

Question

Quizplus · Accepted Answer

The ratio of compensation expense to total operating expense is a cost-efficiency measure because it indicates how much of the organization's operating budget is being spent on employee compensation. A lower ratio implies that the organization is spending less on employee compensation and being more cost-efficient. A higher ratio indicates that the organization is spending a larger portion of its operating budget on employee compensation and may not be cost-efficient. The other options do not directly relate to cost-efficiency measures.

Which of the Following Is a Cost-Efficiency Measure