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

Which of the following is a direct financial consequence for an organisation when employees work ineffectively?

Higher unit costs are a direct financial consequence of ineffective work. Employees take longer, waste materials and redo tasks, so more resources go into each unit of output. Tax rates are set by government, and slow service harms customer loyalty rather than building it.

  1. AHigher unit costs because more time and resources are used per unit of outputCorrect
  2. BA lower rate of corporation tax on profits
  3. CReduced need for internal controls
  4. DGreater customer loyalty from slower service

Explanation

Ineffective working means more labour hours, rework and waste for the same output, so the cost per unit rises. The other options do not follow from ineffectiveness: tax rates are set by law, controls are usually needed more, and slow service tends to damage loyalty.

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