Which of the Following Is an Advantage of a Lump-Sum

question 5

Multiple Choice

Which of the following is an advantage of a lump-sum increase (LSI) plan compared with traditional raises?

• A) LSI plans eliminate the need for annual adjustments of the pay matrix.
• B) Employees are more satisfied with LSIs.
• C) It heightens employees' awareness of what reward their performance merited.
• D) It increases the compounding effect of succeeding raises on the employee's base pay.

Understand the relationship between attitudes, values, and behaviors, and their impact on actions.

Explain the various factors influencing job satisfaction and organizational behavior.

Identify how cultural variations affect organizational behavior and employee interactions.

Comprehend the theory of equity within the context of organizational behavior.

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Definitions:

Diminishing-Balance

A method of depreciation that accelerates the rate at which an asset loses value, applying a constant rate to the declining book value each period.

Constant Percentage

A method or rate that does not change over time, often used in calculations of growth, discount, or interest rates.

Units-of-Production Method

A depreciation method that allocates the cost of an asset over its useful life based on the number of units it produces or hours it operates.

Depreciation Expense

An accounting method of allocating the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.