Chapter 13 Compensation Budgets and Administration TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) Announcements of layoffs and plant closings always have negative effects on stock prices as investors anticipate poor cash flow and increased costs. ⊚ ⊚
2)
true false
Using contingent employees makes it more difficult to control labour costs. ⊚ ⊚
true false
3) A planned level rise is the percentage increase in average pay that is planned for a budget period. ⊚ ⊚
true false
4) A Consumer Price Index (CPI) of 120 in Ontario and 160 in Toronto means that it costs more to live in Toronto. ⊚ ⊚
true false
5) Changes in the CPI only indicate whether prices have increased more or less rapidly in an area since the base period. ⊚ ⊚
6)
true false
The CPI does not necessarily reflect an individual employee's cost of living. ⊚ ⊚
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true false
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