Family Goods,a Chain of Departmental Stores,provides an Incentive Pay Plan

question 35

Multiple Choice

Family Goods,a chain of departmental stores,provides an incentive pay plan along with its base wage/salary structure.All of the following are reasons for the firm to offer an incentive plans in addition to its base wage/salary structure EXCEPT that:

• A) calculations are simpler when both systems are taken together.
• B) payroll expenses can grow or shrink in response to the success of the business.
• C) labor market competition necessitates the use of incentives.
• D) minimum wage laws specify the use of such a system.

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