Question 1

Which of the following would be an appropriate method of categorizing the cost of a training program?

Accepted Answer

A)  based on the number of participants 
B)  using two separate categories, indirect and direct costs 
C)  based on hard costs, soft costs, and variable costs of the training program 
D)  according to the specific stage of the training process 
A)  based on the number of participants 
B)  using two separate categories, indirect and direct costs 
C)  based on hard costs, soft costs, and variable costs of the training program 
D)  according to the specific stage of the training process

Question 2

What formula should be used to calculate benefits to cost ratio?

Accepted Answer

A)  BCR = (Benefits of the Program)/(Cost of the Program) 
B)  BCR = (Cost of the Program - Benefits)/(Benefits of the Program) 
C)  BCR = (Benefits - Cost of the Program)/(Cost of the Program) 
D)  BCR = (Cost of the Program - Benefits)/(Cost of the Program) 
A)  BCR = (Benefits of the Program)/(Cost of the Program) 
B)  BCR = (Cost of the Program - Benefits)/(Benefits of the Program) 
C)  BCR = (Benefits - Cost of the Program)/(Cost of the Program) 
D)  BCR = (Cost of the Program - Benefits)/(Cost of the Program)

Question 3

Cost-effectiveness evaluations and the data collection process include some element of assumptions and expert opinions.

Accepted Answer

A) True 
 B)False

Question 4

What is the estimate for utility given the following information? Training has a continued effect on performance for 3 years; the number of people trained is 100; the true difference in job performance between the average trained and untrained employee in standard deviation units is 1.5; the standard deviation of job performance is $50; and the cost of training each employee is $100.

Accepted Answer

A)  $10,000 
B)  $12,500 
C)  $22,500 
D)  $52,500 
A)  $10,000 
B)  $12,500 
C)  $22,500 
D)  $52,500

Question 5

What is the net benefit of a training program if the benefits are $500,000 and the costs are $700,000?

Accepted Answer

A)  ($200,000) 
B)  $200,000 
C)  ($1,200,000) 
D)  $1,200,000 
A)  ($200,000) 
B)  $200,000 
C)  ($1,200,000) 
D)  $1,200,000

Question 6

Explain the differences between cost-effectiveness evaluation and cost-benefit evaluation.

Accepted Answer

Cost-effectiveness evaluation involves c

Question 7

Organizations have become increasingly concerned about the effect of training programs on the bottom line.

Accepted Answer

A) True 
 B)False

Question 8

What is the concept that fundamentally attempts to attach a dollar value to the effectiveness of a training initiative?

Accepted Answer

A)  cost-benefit analysis 
B)  break-even analysis 
C)  utility analysis 
D)  benefit-cost analysis 
A)  cost-benefit analysis 
B)  break-even analysis 
C)  utility analysis 
D)  benefit-cost analysis

Question 9

Which of the following challenges was NOT addressed in the Wood Panel Plant example?

Accepted Answer

A)  quality of end product 
B)  number of preventable accidents 
C)  housekeeping issues associated with the production area 
D)  interactions between management and employees 
A)  quality of end product 
B)  number of preventable accidents 
C)  housekeeping issues associated with the production area 
D)  interactions between management and employees

Question 10

Break even effect size was found to be 2.The actual effect size used to calculate utility was 100.How confident would management be with the expected utility of a particular training program being positive?

Accepted Answer

A)  very confident 
B)  would seek a second opinion given the small margin 
C)  not confident at all 
D)  somewhat confident 
A)  very confident 
B)  would seek a second opinion given the small margin 
C)  not confident at all 
D)  somewhat confident

Question 11

Briefly describe 5 things that can be done to increase the credibility of estimating the benefits of a training program.

Accepted Answer

A trainer can help to increase the credi

Question 12

If employees are performing at relatively similar levels,the effectiveness of a training program tends to be less in dollar terms.

Accepted Answer

A) True 
 B)False

Question 13

How does Cisco collect the data that it uses for its calculation of ROI for its e-learning programs?

Accepted Answer

A)  questionnaire 
B)  Web-based survey 
C)  observation 
D)  interviews 
A)  questionnaire 
B)  Web-based survey 
C)  observation 
D)  interviews

Question 14

If a training program costs $2,000 per employee and the benefit of the program is $5,000 per employee,then the ROI is 1.50 or 150 percent.

Accepted Answer

A) True 
 B)False

Question 15

If training costs are $2,500 per employee and the financial benefit of training is $2,000 per employee,what is the ROI of the training program?

Accepted Answer

A)  (20 percent) 
B)  (25 percent) 
C)  20 percent 
D)  25 percent 
A)  (20 percent) 
B)  (25 percent) 
C)  20 percent 
D)  25 percent

Question 16

Why did Human Resources and Social Development Canada award $1.3 million to the Canadian Society of Training and Development?

Accepted Answer

A)  to develop Canadian training evaluation techniques 
B)  to study ROI case studies in numerous organizations 
C)  to conduct cost-effectiveness evaluations 
D)  to study Canadian trends in training and development 
A)  to develop Canadian training evaluation techniques 
B)  to study ROI case studies in numerous organizations 
C)  to conduct cost-effectiveness evaluations 
D)  to study Canadian trends in training and development

Question 17

In the Wood Panel Plant example,what would be an appropriate explanation for classifying clerical and administrative salaries as an indirect cost?

Accepted Answer

A)  those costs are directly associated with this particular training program 
B)  those costs would have been incurred even if the program was cancelled by management 
C)  authors' choice 
D)  clerical and administrative staff support all trainees 
A)  those costs are directly associated with this particular training program 
B)  those costs would have been incurred even if the program was cancelled by management 
C)  authors' choice 
D)  clerical and administrative staff support all trainees

Question 18

What concept refers to costs that are NOT part of any one particular program but that are needed to support training activities and cannot be recovered even if the program is cancelled?

Accepted Answer

A)  developmental costs 
B)  overhead costs 
C)  indirect costs 
D)  standard costs 
A)  developmental costs 
B)  overhead costs 
C)  indirect costs 
D)  standard costs

Question 19

Break-even analysis can be calculated for any variable in the utility formula.However,the most valuable break-even calculations should be based on the effect size and/or standard deviation.

Accepted Answer

A) True 
 B)False

Question 20

What could be the rationale behind the low percentage of companies that undertake Level 5 calculations for their training programs?

Accepted Answer

A)  given that training initiatives are geared toward people, Level 5 calculations are simply not appropriate 
B)  results associated with Level 4 evaluations are much more relevant 
C)  C-level executives simply are not concerned with Level 5 results 
D)  Level 5 calculations tend to be complex 
A)  given that training initiatives are geared toward people, Level 5 calculations are simply not appropriate 
B)  results associated with Level 4 evaluations are much more relevant 
C)  C-level executives simply are not concerned with Level 5 results 
D)  Level 5 calculations tend to be complex

Which of the following would be an appropriate method of categorizing the cost of a training program?

What formula should be used to calculate benefits to cost ratio?

Cost-effectiveness evaluations and the data collection process include some element of assumptions and expert opinions.

What is the net benefit of a training program if the benefits are $500,000 and the costs are $700,000?

Explain the differences between cost-effectiveness evaluation and cost-benefit evaluation.

Organizations have become increasingly concerned about the effect of training programs on the bottom line.

What is the concept that fundamentally attempts to attach a dollar value to the effectiveness of a training initiative?

Which of the following challenges was NOT addressed in the Wood Panel Plant example?

Break even effect size was found to be 2.The actual effect size used to calculate utility was 100.How confident would management be with the expected utility of a particular training program being positive?

Briefly describe 5 things that can be done to increase the credibility of estimating the benefits of a training program.

If employees are performing at relatively similar levels,the effectiveness of a training program tends to be less in dollar terms.

How does Cisco collect the data that it uses for its calculation of ROI for its e-learning programs?

If a training program costs $2,000 per employee and the benefit of the program is $5,000 per employee,then the ROI is 1.50 or 150 percent.

If training costs are $2,500 per employee and the financial benefit of training is $2,000 per employee,what is the ROI of the training program?

Why did Human Resources and Social Development Canada award $1.3 million to the Canadian Society of Training and Development?

In the Wood Panel Plant example,what would be an appropriate explanation for classifying clerical and administrative salaries as an indirect cost?

What concept refers to costs that are NOT part of any one particular program but that are needed to support training activities and cannot be recovered even if the program is cancelled?

Break-even analysis can be calculated for any variable in the utility formula.However,the most valuable break-even calculations should be based on the effect size and/or standard deviation.

What could be the rationale behind the low percentage of companies that undertake Level 5 calculations for their training programs?

The Training and Development Process

Organizational Learning

Learning and Motivation

The Needs Analysis Process

Training Design

Off-The-Job Training Methods

On-The-Job Training Methods

Technology-Based Training Methods

Training Delivery

Transfer of Training

Training Evaluation

Training Programs

Management Development

The Evolution and Future of Training and Development

Filters

Exam 12: The Costs and Benefits of Training Programs

Which of the following would be an appropriate method of categorizing the cost of a training program?

What formula should be used to calculate benefits to cost ratio?

Cost-effectiveness evaluations and the data collection process include some element of assumptions and expert opinions.

What is the net benefit of a training program if the benefits are $500,000 and the costs are $700,000?

Explain the differences between cost-effectiveness evaluation and cost-benefit evaluation.

Organizations have become increasingly concerned about the effect of training programs on the bottom line.

What is the concept that fundamentally attempts to attach a dollar value to the effectiveness of a training initiative?

Which of the following challenges was NOT addressed in the Wood Panel Plant example?

Break even effect size was found to be 2.The actual effect size used to calculate utility was 100.How confident would management be with the expected utility of a particular training program being positive?

Briefly describe 5 things that can be done to increase the credibility of estimating the benefits of a training program.

If employees are performing at relatively similar levels,the effectiveness of a training program tends to be less in dollar terms.

How does Cisco collect the data that it uses for its calculation of ROI for its e-learning programs?

If a training program costs $2,000 per employee and the benefit of the program is $5,000 per employee,then the ROI is 1.50 or 150 percent.

If training costs are $2,500 per employee and the financial benefit of training is $2,000 per employee,what is the ROI of the training program?

Why did Human Resources and Social Development Canada award $1.3 million to the Canadian Society of Training and Development?

In the Wood Panel Plant example,what would be an appropriate explanation for classifying clerical and administrative salaries as an indirect cost?

What concept refers to costs that are NOT part of any one particular program but that are needed to support training activities and cannot be recovered even if the program is cancelled?

Break-even analysis can be calculated for any variable in the utility formula.However,the most valuable break-even calculations should be based on the effect size and/or standard deviation.

What could be the rationale behind the low percentage of companies that undertake Level 5 calculations for their training programs?

The Training and Development Process

Organizational Learning

Learning and Motivation

The Needs Analysis Process

Training Design

Off-The-Job Training Methods

On-The-Job Training Methods

Technology-Based Training Methods

Training Delivery

Transfer of Training

Training Evaluation

Training Programs

Management Development

The Evolution and Future of Training and Development

Filters