Which of the Following Statements Regarding Compensation Is False

question 113

Multiple Choice

Which of the following statements regarding compensation is false?

• A)Wages are usually paid by the hour.
• B)Salary is usually a form of fixed compensation.
• C)Bonuses are a form of compensation obtained if certain criteria are met.
• D)Bonuses paid within two and a half months of year-end are included in employee's compensation in the year they were earned.

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Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when a choice is made, representing the benefits one misses out on.

Comparative Advantage

The ability of an individual or entity to produce a good or service at a lower opportunity cost than others.

Absolute Advantage

The ability of a country, individual, or group to produce a good or service more efficiently than another entity, using fewer resources.

Car Wash

A facility used to clean the exterior and, sometimes, the interior of motor vehicles.