Question 1

Direct costs are costs that are linked directly to a particular department.

Accepted Answer

A) True 
 B)False

Question 2

Non-monetary benefits are similar to behaviour or Level 3 evaluation criteria.

Accepted Answer

A) True 
 B)False

Question 3

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.

Accepted Answer

A) True 
 B)False

Question 4

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?

Accepted Answer

A)  focus on a single unit, such as time savings, increase in output, decrease in errors, etc. 
B)  determine a value for each unit 
C)  determine the change in performance post-training 
D)  obtain an annual amount and multiply that amount by the effect size

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

Question 6

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

Accepted Answer

A)  cost-benefit evaluation 
B)  return on investment 
C)  benefit-cost ratio 
D)  return on expectations

Question 7

If break-even occurs with an effect size of 2, what conclusion can you make about utility if the effect size changes to 2.5 (assume all other utility variables remain constant)?

Accepted Answer

A)  utility will increase 
B)  utility will decrease 
C)  utility will be zero 
D)  utility will not be impacted

Question 8

Often, the benefit-cost ratio of a training program will be the same as the return on investment ratio.

Accepted Answer

A) True 
 B)False

Question 9

The textbook offers a few strategies to strengthen credibility of data. Which of the following strategies was 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

Question 10

What is the main difference between the calculation of the net benefit and benefit-cost ratio?

Accepted Answer

A)  The net benefit does not consider the cost of the program. 
B)  The benefit-cost ratio does not consider the cost of the program. 
C)  The net benefit ratio divides the cost of the program. 
D)  The benefit-cost ratio divides the cost of the program.

Question 11

After doing an evaluation of a training program, you determined the effect size of the training program was 50% less than expected. Assuming all other utility variables remain constant, what conclusion can you draw from this decrease in effect size?

Accepted Answer

A)  an increase in utility 
B)  a decrease in utility 
C)  no impact on utility 
D)  program cost increased

Question 12

According to a survey, what percentage of CEOs want to see learning and development connected to business impact data?

Accepted Answer

A)  90 percent 
B)  93 percent 
C)  96 percent 
D)  100 percent

Question 13

The training program described in the MW CanadaChapter-opening vignette had two main objectives: decrease equipment downtime and improve product quality.

Accepted Answer

A) True 
 B)False

Question 14

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.

Accepted Answer

A) True 
 B)False

Question 15

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

Question 16

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?

Accepted Answer

A)  $4,000 
B)  $1,500 
C)  $3,500 
D)  unable to determine as some of the direct costs have not been provided

Question 17

What costing concept refers to costs that are not part of any one particular program but 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

Question 18

The utility of a training program equals (T)(N)(td) × [(SDy - (N)(C)].

Accepted Answer

A) True 
 B)False

Question 19

Most companies in Canada have begun to calculate the return on investment (ROI) of their training programs.

Accepted Answer

A) True 
 B)False

Question 20

Calculations of ROI and utility could be described as "one part science and one part art."

Accepted Answer

A) True 
 B)False

Exam 11: Training Costs and Benefits

Direct costs are costs that are linked directly to a particular department.

Non-monetary benefits are similar to behaviour or Level 3 evaluation criteria.

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.

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?

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

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

If break-even occurs with an effect size of 2, what conclusion can you make about utility if the effect size changes to 2.5 (assume all other utility variables remain constant) ?

Often, the benefit-cost ratio of a training program will be the same as the return on investment ratio.

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

What is the main difference between the calculation of the net benefit and benefit-cost ratio?

After doing an evaluation of a training program, you determined the effect size of the training program was 50% less than expected. Assuming all other utility variables remain constant, what conclusion can you draw from this decrease in effect size?

According to a survey, what percentage of CEOs want to see learning and development connected to business impact data?

The training program described in the MW CanadaChapter-opening vignette had two main objectives: decrease equipment downtime and improve product quality.

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.

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

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

The utility of a training program equals (T)(N)(td) × [(SDy - (N)(C)].

Most companies in Canada have begun to calculate the return on investment (ROI) of their training programs.

Calculations of ROI and utility could be described as "one part science and one part art."