_______ Refers to an Organizational Philosophy That Bases Pay on Organizational

question 55

Multiple Choice

_______ refers to an organizational philosophy that bases pay on organizational loyalty/tenure.

• A)Pay for performance
• B)Pay for longevity
• C)Skill-based pay
• D)At-market pay
• E)Below-market pay

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Definitions:

Opportunity Costs

Opportunity costs represent the benefits a person or business misses out on when choosing one alternative over another.

Implicit Costs

The opportunity costs of using resources that a firm already owns, representing the income the firm foregoes by using those resources internally rather than renting or selling them.

Explicit Costs

Explicit costs are direct, out-of-pocket payments for resources or services needed for production, such as wages, rent, and materials; they're easily quantifiable and recorded.

Explicit Costs

Direct, out-of-pocket expenses incurred in conducting a business activity or making a decision.