Which of the Following Best Explains How to Establish Pay

question 2

Multiple Choice

Which of the following best explains how to establish pay grade sizes using the telescopic approach?

• A) Look for natural breaks between clusters of jobs when setting up the grades.
• B) Increase the grade widths for higher-value jobs but not necessarily by an equal percentage.
• C) Reduce the number of pay grades by creating large bands.
• D) Make the point spreads equal for all pay grades.

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Definitions:

Unanticipated Fluctuations

These are unexpected changes in financial markets, economic conditions, or company specifics that can influence financial outcomes.

Inventory Management

The practice of ordering, storing, tracking, and controlling inventory to ensure the availability of products while minimizing costs and storage space.

Stock-Out

A situation where inventory is exhausted and unavailable for sale or use, often leading to lost sales or production delays.

Collection Period

The average number of days it takes a company to collect payments owed by its customers for sales made on credit.