Why Is a Bottom-Up Approach for Compensation Budgeting Favoured by the Textbook

question 9

Multiple Choice

Why is a bottom-up approach for compensation budgeting favoured by the textbook author?

• A) For its simplicity.
• B) It supports the strategic pay notion.
• C) It ensures strategy fits with other strategic aspects of the organization.
• D) It is more compatible with new human resource information systems.

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Definitions:

ROG

Rate of Growth, representing the percentage increase in a particular variable over a specified period, often used in economic and financial contexts.

Account

A record or statement that keeps track of financial transactions or an arrangement with a bank to deposit, withdraw, or manage money.

Invoice

A document issued by a seller to a buyer that lists the products or services provided and specifies the amount owed for them.

Outstanding Balance

The amount of money owed that remains unpaid.