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turnover and communication. Others find that investors like the lower costs.
INSTRUCTIONS Define offshoring in your own words and discuss its potential
advantages and disadvantages for a business. Your Part-Time Job
Students often seek part-time jobs to earn some spending money.
PERSONAL FINANCE ACTIVITY Ask your friends who have jobs how their hours
worked are reported to the payroll accountant. Write a report discussing the
different methods of reporting hours worked.
PERSONAL FINANCE ONLINE Log on to glencoeaccounting.glencoe.com and
click on Student Center. Click on Making It Personal and select Chapter 12. Analyzing Employee Productivity
One measure of productivity is the average sales dollars generated by each
employee. For example, in a company with total revenue of $1,480,000 and 20
employees, sales per employee are $74,000, calculated as follows:
Number of Employees Sales per Employee Internet Project
Calculating this measure from period to period
How do people get paid? Visit
or one part of a company to another can identify
productivity changes. If sales per employee
.glencoe.com and click
change greatly, the owner needs to learn why.
on Student Center. Click on
INSTRUCTIONS Answer these questions using
WebQuest and select Unit 3 to
Roadrunner’s income statement on page 222.
continue your Internet project.
1. If Roadrunner has two employees including
the owner, what is the revenue per employee?
2. Suppose Roadrunner hires two more delivery people. The next month’s
revenue increases to $5,400. How has the productivity per employee
glencoeaccounting.glencoe.com 308-337_CH12_868829.indd 337 Chapter 12 Real-World Applications and Connections 337 9/15/05 11:46:51 AM...
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