What Is the Benefit of Using Pay Ranges for Each

question 87

Multiple Choice

What is the benefit of using pay ranges for each pay grade?

• A) facilitates the administration of a total rewards system
• B) gives employers more flexibility in the labor market
• C) identifies and corrects out-of-line pay rates
• D) gives employers less flexibility in the labor market

---

Definitions:

Goodwill

The excess of the purchase price of a business over the fair market value of its identifiable assets and liabilities, recognized as an intangible asset on the balance sheet.

Equity Method

An accounting technique used to record an investor's proportional share of an associate company's net income or loss on its financial statements.

Purchase Price

The total cost that is paid to acquire an asset or service, often including additional fees and taxes beyond the sticker price.

Equity Method

An accounting technique used to record investments where the investor has significant influence but does not control the investee.