Mapping a Total Compensation Strategy Includes Setting Objectives and Specifying

question 28

Multiple Choice

Mapping a total compensation strategy includes setting objectives and specifying policies on __________.

• A)contributions
• B)social and political context
• C)employee/union needs
• D)HR systems
• E)core culture/values

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Definitions:

Net Operating Income

The total profit of a business after operating expenses have been deducted, but before taxes and interest.

Variable Costing

An accounting method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in the cost of goods sold, excluding fixed manufacturing overhead.

Contribution Margin

The gap between sales income and variable expenses, showing the extent to which income aids in offsetting fixed expenses and creating earnings.

Cost-Volume-Profit

An analysis tool used to determine how changes in costs and volume affect a company's operating income and net income.