Compensation Cafeterias Are Used to Provide Flexibility in Compensation for Low-Level

question 112

True/False

Compensation cafeterias are used to provide flexibility in compensation for low-level employees,as well as top management.

---

Definitions:

Operating Profit

The earnings before interest and taxes (EBIT) generated from a company's core business operations.

Variable Costs

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production volume.

Contribution Margin Ratio

The ratio of contribution margin (sales minus variable costs) to sales revenue, indicating the percentage of each sales dollar available to cover fixed costs and profit.

Operating Income

Operating income, similar to income from operations, is the profit earned from a firm's normal core business operations.