Which of the Following Compensation Packages Is Likely to Work

question 75

Multiple Choice

Which of the following compensation packages is likely to work best for executive managers?

• A)Piecemeal
• B)Stock options
• C)Quarterly bonuses
• D)Commission

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Definitions:

Variable Costs

Costs that vary directly with the level of production output, such as raw materials and direct labor expenses.

Relevant Costs

Relevant costs are those that will be affected by a decision in a specific situation and are considered when making financial or other managerial decisions.

Fixed Costs

Costs that do not change with the level of goods or services produced within a certain scale.

Product

Any item or service that is created through a process and is intended to be supplied to a market to satisfy a want or need.