Actual Pay Is Lagging Behind the Pay Policy When the Compa-Ratio

question 19

Multiple Choice

Actual pay is lagging behind the pay policy when the compa-ratio is:

• A)greater than 1.00.
• B)less than 1.00.
• C)greater than 100.
• D)in the range of 1 to 10.

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Definitions:

Net Operating Income

Income before interest and income taxes have been deducted.

Drop Product

A strategy or decision by a company to discontinue the production, sale, or support of a product line or item.

Special Order

A one-time order that is not considered part of the company’s normal ongoing business.

Variable Cost

A cost that varies, in total, in direct proportion to changes in the level of activity. A variable cost is constant per unit.