The Market Line Is

question 52

Multiple Choice

The market line is

• A) a regression line derived from job evaluation points and the results of the pay survey.
• B) calculated from the median point in each of the organization's pay ranges.
• C) a line representing the organization's average pay for each job in a job family graphed against the average pay for each job in the pay survey.
• D) typically so affected by outliers that it must be adjusted according to the expert judgment of compensation specialists.

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Definitions:

CVP Analysis

Cost-Volume-Profit Analysis; a management accounting tool that helps understand the relationship between costs, volume, and profit.

Inventory

Inventory consists of goods and materials held by a business for the purpose of resale or as part of the production process.

Contribution Margin

The selling price per unit minus the variable cost per unit, used to cover fixed costs and contribute to net profit.

Selling Price

The price for which a product or service is sold to the customer.