Brian,the Director of Compensation,has Been Asked by the Board of Directors

question 9

Multiple Choice

Brian,the director of compensation,has been asked by the board of directors to present the "employee cost factor" for the last 10 years at the next board meeting.Brian needs to do the following calculation for each year:

• A) total compensation and benefits / FTEs
• B) revenue - operating expense - pay and benefits = adjusted profit / FTEs
• C) revenue - operating expense - pay and benefits = adjusted profit / pay and benefits
• D) total pay and benefits / total operating expenses

---

Definitions:

Inventory Turnover

A metric that displays the frequency at which a company's stock is sold and replenished during a certain timeframe.

COGS

The Cost Of Goods Sold; it represents the direct costs attributable to the production of the goods sold by a company.

Net Cash

Describes the amount of cash available after accounting for all cash inflows and outflows.

Statement Of Cash Flows

A financial report that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.