Which of the Following Statements About Employee Compensation Is True

question 112

Multiple Choice

Which of the following statements about employee compensation is true?

• A)Compensation is closely connected to performance appraisal.
• B)A textile mill would be unconcerned about what other similar factories in its geographic area were paying their workers.
• C)Different jobs of equal importance to the company are usually compensated differently.
• D)The two basic types of compensation are pay and benefits.
• E)All of the above statements about employee compensation are true.

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Definitions:

Diminishing Returns Effect

A principle in economics where increasing one factor of production, while keeping others constant, will at some point yield lower per-unit returns.

Variable Cost

Expenses that vary directly with the level of production output, such as raw materials, labor, and energy costs.

Output

The total amount of goods or services produced by a company, sector, or economy within a specific time period.

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the number of units produced.