Which of the following statements about the number of hours worked by employees are true? (Select all the apply.)

Question

BlackTom AI · Accepted Answer

Let’s break down each statement about the number of hours employees work and the associated costs step by step.
Option A: 'Benefit costs are fixed and do not usually increase when an employee works more hours.' This generally reflects the idea that many benefits are tied to a employee’s status rather than the exact number of hours worked, so per-employee benefit costs may not rise simply because hours increase. However, some benefits or insurance plans can have costs that scale with salary, eligibility, or hours in certain policy structures, so the statement holds as a broad simplification but isn’t universally guaranteed.
Option B: 'The benefits cost per hour can be reduced by having employees work longer hours.' This captures a common accounting intuition: if the total benefit cost is largely fixed per employee, spreading that fixed cost over more hours reduces cost per hour worked. It ignores potential overtime or efficiency effects, but as a cost-per-hour concept, it’s often true in many payroll-benefit models when hours increase without a corresponding rise in other cost drivers.
Option C: 'There are no drawbacks to having employees work longer hours.' This is an overgeneralization and is incorrect in most real-world contexts. Longer hours can lead to fatigue, lower productivity per hour, higher risk of errors, increased overtime pay, potential legal/regulatory concerns, and negative impacts on morale and turnover. Therefore, this statement is misleading.
Option D: 'Some employers prefer to pay employees overtime rather than hire additional workers.' This is a commonly observed practice. Paying overtime can be cheaper in the short term than recruiting and onboarding new staff, or it may be used to meet demand spikes without committing to permanent headcount. It also aligns with practices in many industries where overtime is an accepted method to manage workload fluctuations.

In summary, Option B is often true in the sense of cost-per-hour reduction through hour amplification, Option D reflects a real employer tactic, Option A can be true as a generalization but isn’t universally guaranteed, and Option C is generally false due to well-documented drawbacks of longer hours. The combination of these considerations helps explain why multiple options can be correct or incorrect depending on context, but the most consistently accurate statements across typical compensation structures are B and D, with A often true as a general rule and C typically false.

Which of the following statements about the number of hours worked by employees are true? (Select all the apply.)

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