Which of the Following Is the Basic Form of Compensation

question 39

Multiple Choice

Which of the following is the basic form of compensation?

• A)salary plus commission
• B)spiff
• C)bonus
• D)benefits

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Definitions:

Cost Behavior Classifications

The categorization of costs based on how they change in relation to changes in a company’s level of activity or volume.

Activity Base

A measure upon which the allocation of costs is based in activity-based costing, often relating to a metric that causes costs to occur such as machine hours or labor hours.

Cost Behavior

The way in which costs change in relation to variations in an organization’s activity level.

Variable Costs

Costs that change in proportion to the level of production or sales, such as raw materials and direct labor.