Paul and David Work for the Same Company and Have

question 158

Multiple Choice

Paul and David work for the same company and have the same job title, education, work experience, and are equally skilled at what they do. Paul works the night shift and is paid $60,000 a year, while David works a regular day shift and is paid $55,000 a year. Which of the following is the best explanation for why Paul earns more than David?

• A)Paul has more human capital than David.
• B)David has more human capital than Paul.
• C)Paul has received a compensating differential.
• D)Aside from pay, the night shift is more desirable than the day shift.

Understand the role of planning budgets in financial management.

Interpret income statements to identify variances from budgeted figures.

Evaluate the financial health of a business by analyzing its budget variances.

Understand the basic concepts and significance of budgeting in management.

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Definitions:

Unethical Behaviour

Actions or practices within an organisation or individual that are immoral, dishonest, or violate professional standards.

Longer Term Implications

Consequences or effects of actions or decisions that become apparent or have an impact over an extended period.

Organisational Loyalty

The commitment of employees to the goals, values, and success of their organization, often resulting in higher productivity and job satisfaction.

Expense Report

A financial document that details the expenditures incurred during business operations or activities.