All of the Following Statements Are Accurate in Regard to Using

question 47

Multiple Choice

All of the following statements are accurate in regard to using broadbanding EXCEPT:

• A) when using bands jobs that require similar education levels, years of experience and have similar levels of responsibility can be put in the same band.
• B) using broadbanding increases the number of pay grades overall.
• C) the spread of the bands can be well over 100%.
• D) higher wages sometimes result thereby increasing salary expenses for an organization.
• E) training needs to occur to teach managers how to determine start rates within the bands to eliminate subjectivity.

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Definitions:

Accrued Expenses

Expenses that have been incurred but not yet paid or recorded through the normal accounting process.

Net Income

The total profit or loss of a business after all expenses, including taxes and operating costs, have been deducted from revenues.

Prepaid Expenses

Costs paid in advance for goods or services to be received in the future, treated as assets on the balance sheet.

Accounts Receivable

Sums due to a company from its clients for products or services that have been supplied or utilized but remain unpaid.