Which of the Following Is an Advantage of a Lump-Sum

question 51

Multiple Choice

Which of the following is an advantage of a lump-sum increase (LSI) plan?

• A)The plan involves less administrative work.
• B)Employees' awareness of what their performance merited is heightened.
• C)Unions support this concept of merit bonuses.
• D)An LSI plan increases the compounding effect of succeeding raises.

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Definitions:

Book Income

The income of a business as reported in its financial statements, using the accounting methods and standards specified by the relevant authority.

Deferred Tax Liability

A tax obligation that a company owes but is not required to pay until a future date.

Warranty Expense

Costs that a company incurs to repair, replace, or compensate for faulty products during the warranty period.

Book Income

The income of a business as reported in its financial statements, following the principles of accounting.