Which of the Following Is NOT Characteristic of the Open

question 37

Multiple Choice

Which of the following is NOT characteristic of the open pay system?

• A)Each employee knows about company compensation policies.
• B)Each employee can see his/her pay level published on the company intranet.
• C)Each employee is given a general description of the compensation system.
• D)Each employee knows where his/her pay falls within the pay grade.

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Definitions:

Activity Rates

The estimated activity cost divided by estimated activity-base usage.

Cost Budgeted

An estimate of costs for a project or business over a specific period, forming the basis for financial planning and performance measurement.

Activity Pool

A way to assign costs in cost accounting, grouping all the cost inputs associated with a specific activity.

Estimated Activity Base

A projection of the level or volume of activity used in activity-based costing for allocating indirect costs.