Which of the Following Is True About Pay Grades and Ranges

question 5

Multiple Choice

Which of the following is true about pay grades and ranges?

• A)One approach for establishing pay grades and ranges is to have a relatively large number of grades with identical rates of pay for all jobs within each grade.
• B)The minimum of a pay grade's range places a ceiling on the rate that can be paid.
• C)The maximum of a pay grade's range places a floor on the rate that can be paid to any employee whose job is classified in that grade.
• D)In establishing pay grades and ranges,one method is to have a small number of grades with a relatively narrow dollar range for each grade.

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Definitions:

Time Period Assumption

An accounting principle that allows an organization to divide its economic activities into specific time periods such as months, quarters, or years for reporting purposes.

Adjusting Entries

Closing entries in accounting at the end of a period to ensure income and expenses are attributed to the period in which they took place.

Business Events

Occurrences that affect the financial position of a company and can be measured reliably in financial terms.

Recorded

The process of recording business financial transactions into the accounting books.