Lump-Sum Awards Are Typically Given Because They Are Less Costly

question 34

True/False

Lump-sum awards are typically given because they are less costly to the employer than merit increases.

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Definitions:

Insufficient Capacity

A situation where a company does not have enough resources, such as manpower or machinery, to meet current or future production demands.

Contribution Margin

The difference between sales revenue and variable costs, indicating the amount contributing to covering fixed costs and profit.

Variable Cost

A cost that changes in proportion to the level of output or activity in a business.

Special Discounted Price

A reduced price offered on goods or services, usually as part of a promotional deal or to certain groups of customers.