A Company Using a Skill-Based Pay System Prices the Job

question 42

Multiple Choice

A company using a skill-based pay system prices the job of lead assembler at between $10 and $22 per hour.Survey data showed the job assembler averaged $10 per hour and the job of assembly supervisor at $22 per hour.The company was using the _____ method of job matching.

• A) benchmark job
• B) low-high
• C) pay range
• D) benchmark conversion

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Definitions:

Payback Period

The time required for the return on an investment to repay the sum of the original investment.

Cash Inflows

The total amount of money being transferred into a business, usually from its operations, investments, or financing.

Capital Outlay

Expenditures for acquiring or upgrading physical assets such as equipment or property.

Average Rate of Return

A measure of the profitability of an investment, calculated by dividing the average annual profit by the initial investment cost.