All of the Following Are Among the Do's That IBM

question 94

Multiple Choice

All of the following are among the do's that IBM recommends with respect to global compensation EXCEPT:

• A)do involve representatives from key countries.
• B)do allow local managers to decide the mix between base and incentive pay.
• C)do use consistent performance measures.
• D)do allow local countries flexibility in implementations.
• E)do assume that cultural differences can be managed through the incentive plan.

---

Definitions:

Financial Statement

Reports that quantify the financial strength, performance, and liquidity of a company during a specific period.

Normal Balance

The side (debit or credit) of an account that is expected to have a higher balance, indicating its typical increase direction.

Account Nature

Describes the classification of an account in accounting, such as asset, liability, equity, income, or expense.

Periodic Inventory Method

An inventory valuation method where the inventory balance is updated at specific intervals, such as monthly or yearly, rather than continuously.