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:

Aromatic

Refers to compounds that contain a ring of continuously overlapping p-orbitals, displaying enhanced stability as seen in benzene.

Nonaromatic

Refers to organic compounds that do not fulfill the criteria for aromaticity, lacking a conjugated system of pi electrons.

Phenanthrene

A polycyclic aromatic hydrocarbon made up of three fused benzene rings, found in coal tar and crude oil.

Carbon Tetrachloride

A colorless liquid with the formula CCl4, historically used as a cleaning agent, fire extinguisher, and refrigerant, now recognized as a carcinogen.