Why Are Some Compensation Plans Referred to as Variable Pay

question 92

Multiple Choice

Why are some compensation plans referred to as variable pay?

• A) because employee pay varies with market pay
• B) because employee pay is comprised of varying components
• C) because employee pay is linked to performance
• D) because employer costs vary with the incentives offered

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Definitions:

Time Series

A forecasting technique that uses a series of past data points to make a forecast.

Cycles

Patterns in the data that occur every several years.