Skip to content

ACCA Applied Knowledge · Business and Technology · Consequences of ineffectiveness at work

A manufacturing company has a high rate of employee absenteeism caused by poor morale. Which of the following is the MOST direct consequence for the organisation?

Reduced productivity and higher unit costs are the most direct consequence. When morale is poor and staff are frequently absent, output falls while wages and overheads continue, so each unit costs more to produce. Share capital and tax rates are not affected by absenteeism.

  1. AReduced productivity and higher unit costsCorrect
  2. BAn increase in the company's share capital
  3. CA fall in the rate of corporation tax payable

Explanation

Absent staff produce less, while fixed labour and overhead costs continue, so output per employee falls and unit costs rise. Share capital and tax rates are unrelated to absenteeism.

Did you get it right without looking?

One question tells you little. A timed set on Consequences of ineffectiveness at work shows your real accuracy, how long you take and where you lose marks.

More Consequences of ineffectiveness at work questions