Terry Likes to See a Direct Connection Between Her Performance

question 63

Multiple Choice

Terry likes to see a direct connection between her performance and the compensation she receives each year.Terry prefers a

• A)merit-based pay program.
• B)seniority-based pay program.
• C)inflation-based pay program.
• D)variable pay program.
• E)profit sharing pay program.

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Definitions:

Departmental Income Statements

Financial statements that show the operating results of each department within a company, highlighting revenues and expenses.

Profit Center

A branch or division of a business that is responsible for generating its own revenue and profit.

Cost Center

A department within an organization that does not directly add to profit but still incurs costs.

Indirect Expenses

Expenses that cannot be traced directly to one department.