A Variable-Pay Program Bases a Portion of an Employee's Pay

question 72

True/False

A variable-pay program bases a portion of an employee's pay on some individual and/or organizational measure of performance.

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Definitions:

Net Present Value

A financial metric used to evaluate the profitability of an investment or project, calculated by subtracting the present value of cash outflows from the present value of cash inflows over a period of time.

Payback Period

The amount of time it takes for an investment to generate cash flows sufficient to recover its initial cost.

Cash Receipts

Money received by a business during a given period, from operations, investments, and financing.

After-Tax Cash Flows

The net cash inflows and outflows of a project or investment after accounting for income taxes.