A Major Objective of a Well-Designed Compensation Package Is To

question 33

Multiple Choice

A major objective of a well-designed compensation package is to:

• A) provide equal pay to all employees at the same level.
• B) Increase sales and revenues.
• C) provide extensive benefits.
• D) encourage a "hard sell" attitude among the sales force.
• E) micromanage salesperson behaviors.

---

Definitions:

Direct Labor

The wages of employees directly involved in the production of goods or services, considered a variable cost.

Activity Level

Activity level refers to the volume of production or operations in a business. It is a determinant in both variable costing and activity-based costing, impacting how costs are allocated and managed.

Spending Variance

The difference between the budgeted amount of expenses and the actual amount spent.

Direct Materials

Raw materials that are directly traceable to the production of specific goods or services and are a part of the finished product.