Which of the Following Statements Provides the Best Assessment of a Compensation

question 65

Multiple Choice

Which of the following statements provides the best assessment of a compensation system based on job descriptions, job evaluations, pay ranges, and pay grades when the system is put in the context of other types of compensation systems?

• A)It is more legally defensible.
• B)It is less likely to be viewed as fair by employees.
• C)It is more appropriate for dynamic companies and industries.
• D)It is more effective at retaining top performing employees.

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Definitions:

Average Cost Formulas

A method in inventory valuation that calculates the cost of goods sold based on the average cost of all similar items in inventory.

Physical Flow

The tracking of physical units as they move through the production process.

Specific Identification

A method in inventory accounting that tracks the actual cost of specific items sold and in inventory.

Net Income Manipulation

The practice of altering financial statements to present a more favorable picture of a company's profits.