Which of the Following Statements Is/are True Regarding Compensation

question 118

Multiple Choice

Which of the following statements is/are true regarding compensation?
(A) Fixed compensation is generally not linked to measured performance; i.e., it is independent of measured performance.
(B) Properly designed management control systems have contingent compensation items but not fixed compensation items.

• A) Only A is true.
• B) Only B is true.
• C) Both of these are true.
• D) None of these is true.

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Definitions:

Lower-of-Cost-or-Market

An accounting principle that values inventory at the lower of its historical cost or market value.

Lawnmowers

Mechanical devices or machines used for cutting grass to maintain a desired length or appearance of a lawn.

Snowblowers

Machines designed for removing snow from surfaces, such as driveways and sidewalks, using a rotating auger to collect and eject the snow to the side.

Inventory Turnover

A metric that reveals the number of times a company's inventory is sold and restocked within a certain period.