When Using the Direct Market Pricing Approach for Employee Compensation

question 82

Multiple Choice

When using the direct market pricing approach for employee compensation decisions all of the following are accurate EXCEPT:

• A) an internal structure based on the value the organization places on each job is unnecessary.
• B) collecting internal information must be completed before external information can be used.
• C) external data is collected on as many of the organization's jobs as possible.
• D) accurate external data is critical for this approach to be effective.
• E) small sample sizes can lead to incorrect assumptions being made about the external data.

Prepare the stockholders' equity section of the balance sheet.

Calculate earnings per share and understand its significance.

Understand the effects of stock splits on the number of shares outstanding and the stock's market price.

Interpret financial statement data to calculate changes in earnings per share.

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