Exam 12: The Costs and Benefits of Training Programs

Which of the following statements is NOT one of the steps needed to convert benefits to monetary values for the purpose of calculating the return on investment

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(Multiple Choice)

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Question 1

Correct Answer:

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Break-even analysis can be very useful because it helps eliminate the uncertainty associated with the estimates of the various parameters used to calculate utility.

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(True/False)

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Question 2

Correct Answer:

Verified

False

An appropriate approach to costing a training program is to group costs according to the nature or kind of cost.Using one of the approaches described in the textbook,identify potential groupings of costs and provide at least two examples of cost that would naturally fit into each of the groups or categories.

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(Essay)

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Question 3

Correct Answer:

Verified

One of the appropriate methods would involve grouping costs under the following headings or groups: direct costs,indirect costs,developmental costs,trainee compensation costs,and overhead costs.Students will then identify logical costs under each of these five headings/groups.As an example,direct costs may include trainers' wages and benefits,equipment rental,cost of travel (if needed),etc.

You are given the following four pieces of information about a training program: training will have an impact on performance for two years; 10 employees will be trained; the standard deviation of untrained employees in dollars is 100; and it costs $50 to train one employee.What must be the effect size so as to allow the program to break even

(Multiple Choice)

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Question 4

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

(True/False)

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Question 5

A break-even analysis allows you to find the value at which benefits equal costs and so utility is greater than zero but less than one.

(True/False)

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Question 6

What approach did Accenture use to demonstrate the value of its training initiatives

(Multiple Choice)

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Question 7

Given that trainees are already being paid by the company,their salary should NOT be included in a training program cost structure.

(True/False)

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Question 8

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

(Multiple Choice)

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Question 9

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."

(True/False)

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Question 10

A training program is expected to cost $1,000 and the "gross benefit" of the program is $2,000.Given that the return on investment in this scenario is positive,management should NOT invest in this program.

(True/False)

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Question 11

You are given the following five pieces of information about a training program: training will have an impact on performance for two years; 10 employees will be trained; the effect size of the program is 2; the standard deviation of untrained employees in dollars is 100; and it costs $50 to train one employee.What is the dollar value of this training program

(Multiple Choice)

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Question 12

A training program costs $10,000 to deliver and produces a "utility value" of zero.By definition,this program will break even.

(True/False)

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Question 13

What formula should be used to calculate benefits to cost ratio

(Multiple Choice)

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Question 14

If ROI is 2.0,what does this mean for a training program's utility calculation

(Multiple Choice)

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Question 15

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

(Multiple Choice)

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Question 16

What may be concluded from theChapter-opening vignette about MW Canada's Technical Skills Certificate Program as it relates to training cost effectiveness

(Multiple Choice)

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Question 17

Because cost-effectiveness evaluations are NOT dependent on assumptions and opinions,the results should be considered 100 percent accurate.

(True/False)

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Question 18

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 costs and the impact on the bottom line caused by the reduction in scrap as a result of training.

(True/False)

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Question 19

How is the utility of a training program defined

(Multiple Choice)

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Question 20

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Which of the following statements is NOT one of the steps needed to convert benefits to monetary values for the purpose of calculating the return on investment

Break-even analysis can be very useful because it helps eliminate the uncertainty associated with the estimates of the various parameters used to calculate utility.

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

A break-even analysis allows you to find the value at which benefits equal costs and so utility is greater than zero but less than one.

What approach did Accenture use to demonstrate the value of its training initiatives

Given that trainees are already being paid by the company,their salary should NOT be included in a training program cost structure.

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

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."

A training program is expected to cost $1,000 and the "gross benefit" of the program is $2,000.Given that the return on investment in this scenario is positive,management should NOT invest in this program.

A training program costs $10,000 to deliver and produces a "utility value" of zero.By definition,this program will break even.

What formula should be used to calculate benefits to cost ratio

If ROI is 2.0,what does this mean for a training program's utility calculation

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

What may be concluded from theChapter-opening vignette about MW Canada's Technical Skills Certificate Program as it relates to training cost effectiveness

Because cost-effectiveness evaluations are NOT dependent on assumptions and opinions,the results should be considered 100 percent accurate.

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 costs and the impact on the bottom line caused by the reduction in scrap as a result of training.

How is the utility of a training program defined

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 and Leadership Development

The Evolution and Future of Training and Development

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