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1. The new CEO of the firm has told the vice president of HR that all HR activities must use the cost of capital as the benchmark against which their the returns from the activities are measured. The new CEO is implementingthe balanced scorecardhuman economic value added (HEVA).return on investment (ROI).return on assets (ROA).2. Back roads Merchandise an Oklahoma-based manufacturer of outdoors and sports products is facing a pronounced downturn in business due to lower-priced products from foreign competitors. Top management is concerned that this will be a permanent or long-term problem and they have decided to reduce the number of employees. The CEO has conferred with the director of HR to learn which method of reducing the workforce will be received better by both the employees leaving and the employees remaining behind. The CEO also wishes to minimize the cost of the reduction process. The director of HR has suggested the use oflayoffs with the option of re-hire when business revives.voluntary separations with severance.greater use of contingent workers.attrition combined with a hiring freeze.Accounting practices treat expenditures on human capital asdiscretionary.capital investments.expenses.fixed costs.4. Which of the following would NOT be identified as a typical HR operational activity?government compliancesafety programscompensationpartnering with top executives

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