Which of the Following Statements Regarding Compensation Is False

question 7

Multiple Choice

Which of the following statements regarding compensation is false?

• A) Wages are usually paid by the hour.
• B) Salary is usually a form of fixed compensation.
• C) Bonuses are a form of compensation obtained if certain criteria are met.
• D) Bonuses paid within 2½ months of year-end are included in employee's compensation in the year they were earned.

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Definitions:

Efficient Use

Utilization of resources in such a way that maximizes the production of goods and services at lowest cost.

Coase Theorem

A principle stating that if trade in an externality is possible and there are no transaction costs, bargaining will lead to an efficient outcome regardless of the initial allocation of property.

Usage Fee

A charge imposed for using a particular service or facility, typically structured according to the extent or duration of use.

Efficient

Characterized by achieving a desired outcome with the least wasted effort or resources.