The author of the passage suggests which of the following about the advice that the consulting firms discussed in the passage customarily give to companies attempting to control costs?
A It often fails to bring about the intended changes in companies’ compensation systems.
B It has highly influenced views that predominate in prominent business journals.
C It tends to result in decreased labor rates but increased labor costs.
D It leads to changes in companies’ compensation practices that are less visible than changes to work processes would be.
E It might be different if the consulting firms were less narrowly specialized.
It can be inferred from the passage that the author would be most likely to agree with which of the following statements about compensation?
A A company’s labor costs are not affected by the efficiency of its work processes.
B High labor rates are not necessarily inconsistent with the goals of companies that want to reduce costs
C It is more difficult for managers to compare their companies’ labor rates with those of competitors than to compare labor costs.
D A company whose labor rates are high is unlikely to have lower labor costs than other companies.
E Managers often use information about competitors’ labor costs to calculate those companies’ labor rates.