Which of the Following Compensation Options Typically Makes Up the Largest

question 35

Multiple Choice

Which of the following compensation options typically makes up the largest proportion of an employee's pay package?

• A) Benefits
• B) Performance pay
• C) Indirect pay
• D) Base pay

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Definitions:

Equity Transaction

Transactions that affect the ownership interest of shareholders in a company, including issues, buybacks, and sale of shares.

Incremental Costs

Costs directly associated with the production of additional units of goods or services.

Net Of Tax

The amount remaining after the effect of taxes has been accounted for.

Contingent Asset

A possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity.