Which of the Following Is Correct with Regard to Compensation

question 115

Multiple Choice

Which of the following is correct with regard to compensation?

• A) The term "compensation" refers to a number of different elements, including base salary, incentives, bonuses, benefits, and other rewards that employees receive.
• B) There is a general consensus in society that top managers deserve the high compensation they receive because their jobs are very complex and demanding.
• C) The average hourly wage in manufacturing is lower than the average hourly wage in retailing.
• D) Job evaluation is a method for determining whether a worker in a given job should be paid a wage or a salary.
• E) All of these are correct.

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Definitions:

Liabilities

Financial obligations or debts that a business or individual owes to others, which must be settled over time.

Total Return

The overall financial gain or loss on an investment over a specified time period, including both capital gains and any income received.

Long-Term Growth

The process of expanding or improving a business, investment, or economic endeavor over a considerable period, aiming for sustained and stable progress.

Functional Expenses

In non-profit accounting, these are the expenses directly related to the organization's programmatic, fundraising, and administrative activities.