Question 1

Which of the following statements best describes the concept of cost-effectiveness?

Accepted Answer

A)  compares costs of training in dollars to benefits in dollars 
B)  compares non-dollar cost of training to non-dollar benefits 
C)  provides a ratio of net benefits to training costs, divided by the number of participants. 
D)  compares net monetary cost of training to net benefits 
A)  compares costs of training in dollars to benefits in dollars 
B)  compares non-dollar cost of training to non-dollar benefits 
C)  provides a ratio of net benefits to training costs, divided by the number of participants. 
D)  compares net monetary cost of training to net benefits

Question 2

A training program cost $10,000 to deliver.An evaluation of the program determines a decrease in employee turnover from 20 percent to 10 percent.This would be classified as a cost-effectiveness evaluation.

Accepted Answer

A) True 
 B)False

Question 3

If a training program is expected to reduce the amount of scrap in the production of a product,then a cost-effectiveness evaluation would indicate how much the training program cost and the impact on the bottom line caused by the reduction in scrap.

Accepted Answer

A) True 
 B)False

Question 4

There is a negative relationship between the number of employees trained and the utility of a training program.

Accepted Answer

A) True 
 B)False

Question 5

What was the most salient outcome derived from Accenture's ROI study?

Accepted Answer

A)  assessed the relationship between training costs and effectiveness 
B)  introduced a level of rigour associated with training evaluations 
C)  helped link the role training and development play in supporting corporate goals 
D)  allowed the company to realize that for every $3.53 invested in training, they received a return of $1.00 
A)  assessed the relationship between training costs and effectiveness 
B)  introduced a level of rigour associated with training evaluations 
C)  helped link the role training and development play in supporting corporate goals 
D)  allowed the company to realize that for every $3.53 invested in training, they received a return of $1.00

Question 6

If a break-even analysis produces neutral results,what impact is expected on the utility?

Accepted Answer

A)  utility is positive 
B)  utility is zero 
C)  utility is negative 
D)  utility cannot be calculated 
A)  utility is positive 
B)  utility is zero 
C)  utility is negative 
D)  utility cannot be calculated

Question 7

Overhead costs are usually allocated to each training initiative.

Accepted Answer

A) True 
 B)False

Question 8

What conclusion may be made in the Accenture study between training and productivity?

Accepted Answer

A)  surprisingly, the ROI study found that billings, a metric of productivity, actually decreased 
B)  a positive relationship between training levels and productivity metrics 
C)  results were neutral-in other words, ROI was 1:1 
D)  results were negative 
A)  surprisingly, the ROI study found that billings, a metric of productivity, actually decreased 
B)  a positive relationship between training levels and productivity metrics 
C)  results were neutral-in other words, ROI was 1:1 
D)  results were negative

Question 9

Briefly describe at least three reasons why many managers avoid the costing process when it comes to training.

Accepted Answer

Some managers avoid the costing process

Question 10

Many organizations in Canada tend to view training as an investment.

Accepted Answer

A) True 
 B)False

Question 11

A return on investment ratio of 1:.50 means that for every 50 cents invested in a training program,$1.00 will be returned to the company.

Accepted Answer

A) True 
 B)False

Question 12

In order to increase the credibility of benefits associated with a training program,human resource departments should use soft data when possible.

Accepted Answer

A) True 
 B)False

Question 13

Identity and briefly outline the advantages and disadvantages of the three ways to administer training accounts.

Accepted Answer

Accounting treatment of training costs c

Question 14

The textbook offers a few strategies to strengthen credibility of data.Which of the following strategies were NOT discussed in the textbook?

Accepted Answer

A)  use reliable sources for data 
B)  use hard data if available 
C)  do not adjust the data if the estimates appear too optimistic 
D)  disclose assumptions 
A)  use reliable sources for data 
B)  use hard data if available 
C)  do not adjust the data if the estimates appear too optimistic 
D)  disclose assumptions

Question 15

In the Wood Panel Plant example,how did the authors calculate the total training cost per participant?

Accepted Answer

A)  total training costs divided by the number of participants 
B)  total trainee compensation divided by the number of participants 
C)  direct and indirect costs divided by the number of participants 
D)  overhead costs, indirect costs, and direct costs divided by the number of participants 
A)  total training costs divided by the number of participants 
B)  total trainee compensation divided by the number of participants 
C)  direct and indirect costs divided by the number of participants 
D)  overhead costs, indirect costs, and direct costs divided by the number of participants

Which of the following statements best describes the concept of cost-effectiveness?

A training program cost $10,000 to deliver.An evaluation of the program determines a decrease in employee turnover from 20 percent to 10 percent.This would be classified as a cost-effectiveness evaluation.

If a training program is expected to reduce the amount of scrap in the production of a product,then a cost-effectiveness evaluation would indicate how much the training program cost and the impact on the bottom line caused by the reduction in scrap.

There is a negative relationship between the number of employees trained and the utility of a training program.

What was the most salient outcome derived from Accenture's ROI study?

If a break-even analysis produces neutral results,what impact is expected on the utility?

Overhead costs are usually allocated to each training initiative.

What conclusion may be made in the Accenture study between training and productivity?

Briefly describe at least three reasons why many managers avoid the costing process when it comes to training.

Many organizations in Canada tend to view training as an investment.

A return on investment ratio of 1:.50 means that for every 50 cents invested in a training program,$1.00 will be returned to the company.

In order to increase the credibility of benefits associated with a training program,human resource departments should use soft data when possible.

Identity and briefly outline the advantages and disadvantages of the three ways to administer training accounts.

The textbook offers a few strategies to strengthen credibility of data.Which of the following strategies were NOT discussed in the textbook?

In the Wood Panel Plant example,how did the authors calculate the total training cost per participant?

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 statements best describes the concept of cost-effectiveness?

A training program cost $10,000 to deliver.An evaluation of the program determines a decrease in employee turnover from 20 percent to 10 percent.This would be classified as a cost-effectiveness evaluation.

If a training program is expected to reduce the amount of scrap in the production of a product,then a cost-effectiveness evaluation would indicate how much the training program cost and the impact on the bottom line caused by the reduction in scrap.

There is a negative relationship between the number of employees trained and the utility of a training program.

What was the most salient outcome derived from Accenture's ROI study?

If a break-even analysis produces neutral results,what impact is expected on the utility?

Overhead costs are usually allocated to each training initiative.

What conclusion may be made in the Accenture study between training and productivity?

Briefly describe at least three reasons why many managers avoid the costing process when it comes to training.

Many organizations in Canada tend to view training as an investment.

A return on investment ratio of 1:.50 means that for every 50 cents invested in a training program,$1.00 will be returned to the company.

In order to increase the credibility of benefits associated with a training program,human resource departments should use soft data when possible.

Identity and briefly outline the advantages and disadvantages of the three ways to administer training accounts.

The textbook offers a few strategies to strengthen credibility of data.Which of the following strategies were NOT discussed in the textbook?

In the Wood Panel Plant example,how did the authors calculate the total training cost per participant?

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