Test Bank Docx The Benefit Determination Process Ch.12

1.

In 1959, benefits were approximately _____ percent of payroll and in 2010 it was approximately _____ percent of payroll. 
 

2.

All of the following factors are reasons for the growth of benefits EXCEPT: 
 

3.

Which of the following benefits is NOT mandated by state or federal legislation? 
 

4.

Which of the following statements is true of employee benefits? 
 

5.

The typical employee can recall _____ percent of the benefits he or she receives. 
 

6.

Surveys show that the most highly valued benefit is: 
 

7.

A survey shows that the majority of employers are responding to increased benefit costs by _____. 
 

8.

The first issue in setting up a benefits package is: 
 

9.

A benefit plan that allocates a set dollar amount to employees and allows them to select benefits is called _____ plan. 
 

10.

Which of the following is NOT a disadvantage of flexible benefit programs? 
 

11.

Which of the following is an advantage of flexible benefit plans? 
 

12.

All of the following are advantages of flexible benefits EXCEPT: 
 

13.

If a benefit forecast suggests future cost containment may be difficult, the benefit should: 
 

14.

DrenchFort Corp. is a small company that pays high wages. As its wages are high, it does not provide any benefits. Recently, it has noticed that its employee turnover has increased, so it decides to provide benefits to retain employees. Which of the following benefits is most likely to reduce turnover? 
 

15.

Which of the following is NOT part of the cost-centered approach for deciding to provide a benefit? 
 

16.

The most widely used benefit survey is conducted by: 
 

17.

Various studies have found that only two specific benefits curtailed employee turnover: _____ and _____. 
 

18.

A recent survey shows employees ranking employee benefits _____ in explaining job satisfaction. 
 

19.

How many weeks of leave does Family Medical Leave Act (1993) mandate for all workers at companies that employ 50 or more people? 
 

20.

_____ allows employees who have resigned or have been laid off through no fault of their own to continue receiving health coverage under their employer's plan at a cost borne by the employee. 
 

21.

The _____ requires individuals to maintain minimal essential health insurance coverage or pay a penalty unless exempted for religious beliefs or financial hardship. 
 

22.

One of the most preferred benefits is _____. 
 

23.

_____ are NOT used for determining employee benefit preferences. 
 

24.

_____ is the most frequently used medium for communicating employee benefits. 
 

25.

Trumbrella Corp. is a pharmaceuticals company. One of its employees reports that he had an on-the-job injury caused by slippery factory floor that broke his back. When Trumbrella initiates its claims processing, it should first: 
 

26.

Which of the following companies uses probationary periods as a cost-containment measure? 
 

27.

All of the following are cost-containment practices designed to reduce benefit costs EXCEPT: 
 

28.

The biggest cost-containment strategy in recent years is the movement to: 
 

29.

By limiting liability for an employee's hospital stay costs to $200,000, an employer is using a cost-containment measure known as: 
 

30.

As part of the efforts to bring down the employee benefits cost to the company, GrindStop Corp. restricts the number of visits to the dentists covered in the dental plan to two per year. Which of the following cost-containment strategies is used by GrindStop? 
 

31.

Today, benefits make up about 25 percent of payroll costs. 
 
True    False

32.

Pension costs are of no concern to employers as the government handles the pension costs. 
 
True    False

33.

All employee benefits provided by employers are taxable. 
 
True    False

34.

The favorable tax status granted to many benefits is safe from the threat of recurrent tax reform proposals. 
 
True    False

35.

A job ad stating generous benefits leads applicants to place higher value on benefits in choosing among jobs. 
 
True    False

36.

Benefits can be an effective tool to attract and retain employees when the benefits address the needs of a target group. 
 
True    False

37.

Cost pressure related to increasing diversity of the workforce is one of the reasons companies are offering flexible benefit plans. 
 
True    False

38.

Flexible benefit plans eliminate the involvement of employees. 
 
True    False

39.

A disadvantage of flexible benefit programs is that they increase administrative burdens. 
 
True    False

40.

Employers prefer the noncontributory approach to financing benefits because this allows greater control of costs. 
 
True    False

41.

A major reason for the proliferating cost of benefit programs is the narrow focus of benefit administrators. 
 
True    False

42.

If the future cost containment of a benefit may be a problem, the benefit should be offered on a noncontributory basis. 
 
True    False

43.

The only two benefits shown to reduce turnover are pensions and medical coverage. 
 
True    False

44.

The Family Medical Leave Act of 1993 mandates 20 weeks of leave for all workers at companies that employ 10 or more people. 
 
True    False

45.

The Employment Retirement Income Security Act (1974) requires employers to offer some form of pension. 
 
True    False

46.

According to available evidence, companies can successfully remain nonunion by offering the same benefits as those provided by unionized firms. 
 
True    False

47.

One of the best strategies for determining external equity is to conduct a benefit survey. 
 
True    False

48.

Employees' preferences of various benefits can be predicted accurately from demographic data. 
 
True    False

49.

No strong data exist linking benefits level and employee productivity. 
 
True    False

50.

Employees prefer using their company's intranet for accessing their benefits information as they do not need to complete lengthy paperwork. 
 
True    False

51.

What is the role of government impetus in the development of employee benefits? 
 

52.

What are the four major administration issues that arise in setting up a benefit package? 
 

53.

What are the major disadvantages of a flexible benefits package? 
 

54.

What can administrators do to control the increasing benefits costs? 
 

55.

What are some of the common cost-containment practices with regard to benefits administration?