Question 1

Direct costs include the trainer's salary, food and refreshments, cost of travel, and the basic costs associated with doing a needs analysis.

Accepted Answer

A) True 
 B)False

Question 2

What would be an appropriate explanation for classifying clerical and administrative salaries as an indirect cost in the Wood Panel Plant example?

Accepted Answer

A)  those costs are directly associated with this particular training program 
B)  those costs would have been incurred even if the program were cancelled by management 
C)  this classification decision was the authors' choice 
D)  clerical and administrative staff support many different departments, not just HR 
A)  those costs are directly associated with this particular training program 
B)  those costs would have been incurred even if the program were cancelled by management 
C)  this classification decision was the authors' choice 
D)  clerical and administrative staff support many different departments, not just HR

Question 3

What does it mean when the utility factor for a training program is zero?

Accepted Answer

A)  the organization should not implement the training program 
B)  the training program's development costs equal the net benefits of the program 
C)  the benefits are greater than costs 
D)  the program breaks even 
A)  the organization should not implement the training program 
B)  the training program's development costs equal the net benefits of the program 
C)  the benefits are greater than costs 
D)  the program breaks even

Question 4

When calculating utility, what is the concept that measures the true difference in performance between average trained and untrained employees in standard deviation units?

Accepted Answer

A)  the standard deviation of untrained employees in dollars 
B)  the benefits-cost ratio 
C)  the effect size 
D)  return on investment 
A)  the standard deviation of untrained employees in dollars 
B)  the benefits-cost ratio 
C)  the effect size 
D)  return on investment

Question 5

What do some experts consider the calculation of return on investment (ROI) to be in terms of Kirkpatrick's model of training evaluation?

Accepted Answer

A)  the combination of all levels of evaluation 
B)  levels 3 and 4 combined 
C)  level 5 
D)  level 4 
A)  the combination of all levels of evaluation 
B)  levels 3 and 4 combined 
C)  level 5 
D)  level 4

Question 6

Why should trainers and HR professionals learn how to calculate and demonstrate the financial results of training and development investments?

Accepted Answer

Trainers and HR professionals must learn

Question 7

The Wood Panel Plant example depicted in Table 11.2 resulted in a return on investment outcome of 5.78. What can management conclude from that number if the assumptions underpinning the ROI calculations are correct?

Accepted Answer

A)  management should expect a $1.00 return for every $5.78 invested in training 
B)  management should expect to receive $5.78 for every dollar invested in training 
C)  management should expect a $1.00 return for every 58 cents invested in training 
D)  the break-even point on this training program will required a 578% "effect size" 
A)  management should expect a $1.00 return for every $5.78 invested in training 
B)  management should expect to receive $5.78 for every dollar invested in training 
C)  management should expect a $1.00 return for every 58 cents invested in training 
D)  the break-even point on this training program will required a 578% "effect size"

Question 8

According to the textbook, what percentage of CEOs would like to see training and development linked to return on investment data?

Accepted Answer

A)  47 percent 
B)  68 percent 
C)  74 percent 
D)  96 percent 
A)  47 percent 
B)  68 percent 
C)  74 percent 
D)  96 percent

Question 9

If ROI is 2.0, what does this mean for a training program's utility calculation?

Accepted Answer

A)  that $2 was spent on the program, which should provide a negative $2 in utility 
B)  that there is a return of $1 for every $2 in utility 
C)  that $1 was spent on the program for every $2 received as net utility 
D)  that there is a positive utility result 
A)  that $2 was spent on the program, which should provide a negative $2 in utility 
B)  that there is a return of $1 for every $2 in utility 
C)  that $1 was spent on the program for every $2 received as net utility 
D)  that there is a positive utility result

Question 10

As explained in theChapter-opening vignette, MW Canada introduced the Technical Skills Certificate Program (TSCP) to its workforce in an effort to accomplish which of the following?

Accepted Answer

A)  adapt to increasingly competitive markets 
B)  reduce top line results 
C)  reduce overall training costs 
D)  align its training programs to Canadian national standards 
A)  adapt to increasingly competitive markets 
B)  reduce top line results 
C)  reduce overall training costs 
D)  align its training programs to Canadian national standards

Question 11

Which of the following statements best describes the concept of cost-effectiveness?

Accepted Answer

A)  compares costs of training in dollars to benefits in dollars 
B)  compares non-dollar cost of training to non-dollar benefits 
C)  provides a ratio of net benefits to training costs, divided by the number of participants 
D)  compares net monetary cost of training to net benefits in non-monetary terms 
A)  compares costs of training in dollars to benefits in dollars 
B)  compares non-dollar cost of training to non-dollar benefits 
C)  provides a ratio of net benefits to training costs, divided by the number of participants 
D)  compares net monetary cost of training to net benefits in non-monetary terms

Question 12

a) Briefly describe the three methods presented in the textbook for calculating the financial benefits of training and development programs (not including utility analyses).?b) For each method, calculate the financial value of the training program if the benefit is $10,000 and the cost of the program is $6,000.

Accepted Answer

a) The three methods are (1) net benefit

Question 13

What formula should be used to calculate benefits to cost ratio?

Accepted Answer

A)  BCR = (Benefits of the Program)/(Cost of the Program) 
B)  BCR = (Cost of the Program - Benefits)/(Benefits of the Program) 
C)  BCR = (Benefits - Cost of the Program)/(Cost of the Program) 
D)  BCR = (Cost of the Program - Benefits)/(Cost of the Program) 
A)  BCR = (Benefits of the Program)/(Cost of the Program) 
B)  BCR = (Cost of the Program - Benefits)/(Benefits of the Program) 
C)  BCR = (Benefits - Cost of the Program)/(Cost of the Program) 
D)  BCR = (Cost of the Program - Benefits)/(Cost of the Program)

Question 14

To calculate the impact training has on the bottom line, trainers or program designers must be able to calculate the costs and benefits of training programs.

Accepted Answer

A) True 
 B)False

Question 15

If the net benefit of a training program is $3,000 and the cost of the program is $1,000, what is the return on investment (ROI)??

Accepted Answer

A)  3 
B)  2 
C)  .33 
D)  1 
A)  3 
B)  2 
C)  .33 
D)  1

Question 16

An appropriate approach to costing a training program is to group costs according to the nature or kind of cost. Using one of the approaches described in the textbook, identify potential groupings of costs and provide at least two examples of cost that would naturally fit into each of the groups or categories.

Accepted Answer

One of the appropriate methods would inv

Question 17

Information from a utility analysis can be used to determine the return on investment (ROI).

Accepted Answer

A) True 
 B)False

Question 18

If untrained employees are performing at relatively similar levels, the effectiveness of a training program tends to be less in dollar terms.

Accepted Answer

A) True 
 B)False

Question 19

a) Briefly describe at least three reasons why many managers avoid the costing process when it comes to training.?b) What might senior management do to "encourage" training programs to include costing and some element of quantifiable benefits associated with specific training programs?

Accepted Answer

a) Some managers avoid the costing proce

Question 20

Experts consider the calculation of return on investment (ROI) to be Level 6 in Kirkpatrick's model of training evaluation.

Accepted Answer

A) True 
 B)False

Direct costs include the trainer's salary, food and refreshments, cost of travel, and the basic costs associated with doing a needs analysis.

What would be an appropriate explanation for classifying clerical and administrative salaries as an indirect cost in the Wood Panel Plant example?

What does it mean when the utility factor for a training program is zero?

When calculating utility, what is the concept that measures the true difference in performance between average trained and untrained employees in standard deviation units?

What do some experts consider the calculation of return on investment (ROI) to be in terms of Kirkpatrick's model of training evaluation?

Why should trainers and HR professionals learn how to calculate and demonstrate the financial results of training and development investments?

The Wood Panel Plant example depicted in Table 11.2 resulted in a return on investment outcome of 5.78. What can management conclude from that number if the assumptions underpinning the ROI calculations are correct?

According to the textbook, what percentage of CEOs would like to see training and development linked to return on investment data?

If ROI is 2.0, what does this mean for a training program's utility calculation?

As explained in theChapter-opening vignette, MW Canada introduced the Technical Skills Certificate Program (TSCP) to its workforce in an effort to accomplish which of the following?

Which of the following statements best describes the concept of cost-effectiveness?

What formula should be used to calculate benefits to cost ratio?

To calculate the impact training has on the bottom line, trainers or program designers must be able to calculate the costs and benefits of training programs.

If the net benefit of a training program is $3,000 and the cost of the program is $1,000, what is the return on investment (ROI)??

Information from a utility analysis can be used to determine the return on investment (ROI).

If untrained employees are performing at relatively similar levels, the effectiveness of a training program tends to be less in dollar terms.

a) Briefly describe at least three reasons why many managers avoid the costing process when it comes to training.?b) What might senior management do to "encourage" training programs to include costing and some element of quantifiable benefits associated with specific training programs?

Experts consider the calculation of return on investment (ROI) to be Level 6 in Kirkpatrick's model of training evaluation.

The Training and Development Process

Learning and Motivation

The Needs Analysis Process

Training Design

Off The Job Training Methods

On The Job Training Methods

Technology-Based Training Methods

Training Delivery

Transfer of Training

Training Evaluation

Training Programs

Management and Leadership Development

The Evolution and Future of Training and Development

Filters

Exam 11: Training Costs and Benefits

Direct costs include the trainer's salary, food and refreshments, cost of travel, and the basic costs associated with doing a needs analysis.

What would be an appropriate explanation for classifying clerical and administrative salaries as an indirect cost in the Wood Panel Plant example?

What does it mean when the utility factor for a training program is zero?

When calculating utility, what is the concept that measures the true difference in performance between average trained and untrained employees in standard deviation units?

What do some experts consider the calculation of return on investment (ROI) to be in terms of Kirkpatrick's model of training evaluation?

Why should trainers and HR professionals learn how to calculate and demonstrate the financial results of training and development investments?

The Wood Panel Plant example depicted in Table 11.2 resulted in a return on investment outcome of 5.78. What can management conclude from that number if the assumptions underpinning the ROI calculations are correct?

According to the textbook, what percentage of CEOs would like to see training and development linked to return on investment data?

If ROI is 2.0, what does this mean for a training program's utility calculation?

As explained in theChapter-opening vignette, MW Canada introduced the Technical Skills Certificate Program (TSCP) to its workforce in an effort to accomplish which of the following?

Which of the following statements best describes the concept of cost-effectiveness?

What formula should be used to calculate benefits to cost ratio?

To calculate the impact training has on the bottom line, trainers or program designers must be able to calculate the costs and benefits of training programs.

If the net benefit of a training program is $3,000 and the cost of the program is $1,000, what is the return on investment (ROI)??

Information from a utility analysis can be used to determine the return on investment (ROI).

If untrained employees are performing at relatively similar levels, the effectiveness of a training program tends to be less in dollar terms.

a) Briefly describe at least three reasons why many managers avoid the costing process when it comes to training.?b) What might senior management do to "encourage" training programs to include costing and some element of quantifiable benefits associated with specific training programs?

Experts consider the calculation of return on investment (ROI) to be Level 6 in Kirkpatrick's model of training evaluation.

The Training and Development Process

Learning and Motivation

The Needs Analysis Process

Training Design

Off The Job Training Methods

On The Job Training Methods

Technology-Based Training Methods

Training Delivery

Transfer of Training

Training Evaluation

Training Programs

Management and Leadership Development

The Evolution and Future of Training and Development

Filters