A Disadvantage of Using the Pay-Setting Approach That Groups Jobs

question 95

Multiple Choice

A disadvantage of using the pay-setting approach that groups jobs into a smaller number of pay grades is that:

• A)it increases administrative burden.
• B)it permits less flexibility in moving employees from job to job.
• C)it results in some jobs being underpaid and others overpaid.
• D)it increases costs of surveying the market.

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Definitions:

Mark-Up

The markup on goods’ cost intended to defray overhead expenditures and yield profit.

Operating Expenses

The costs associated with the day-to-day operations of a business.

Operating Profit

Earnings derived from a corporation's principal operations, before subtracting interest and taxes.

Cash Discount Rate

A reduction on the invoice price offered by sellers to encourage prompt payment from the buyer.