Which practice is a corrective action for cost control related to labor cost?

Which practice is a corrective action for cost control related to labor cost?

• A. Cross-training staff to reduce number of workers
• B. Hire more managers
• C. Increase marketing spend
• D. Extend supplier payment terms

Answer: (A)

The main idea is reducing labor costs by making staffing more flexible and efficient. Cross-training staff to handle multiple roles creates a versatile team that can cover busy periods or absences without bringing in additional employees or paying overtime. When demand fluctuates, you can adjust how many people are needed without increasing overall wage costs, keeping service levels intact. The other options don’t directly lower labor costs: hiring more managers adds to payroll, increasing marketing spend doesn’t affect labor, and extending supplier payment terms relates to cash flow, not how labor is managed.

The main idea is reducing labor costs by making staffing more flexible and efficient. Cross-training staff to handle multiple roles creates a versatile team that can cover busy periods or absences without bringing in additional employees or paying overtime. When demand fluctuates, you can adjust how many people are needed without increasing overall wage costs, keeping service levels intact. The other options don’t directly lower labor costs: hiring more managers adds to payroll, increasing marketing spend doesn’t affect labor, and extending supplier payment terms relates to cash flow, not how labor is managed.