You Are a Newly Hired Director of Human Resources for a New

question 44

Multiple Choice

You are a newly hired director of human resources for a new software company.Your CEO has asked you to provide the board of directors with recommendations relating to the company's yet-to-be-established reward system.What should you tell the board?

• A) The various combinations of intrinsic and extrinsic rewards need to be considered.
• B) The optimal strategy is the least expensive.
• C) Like most companies in Canada,we should adopt a total compensation approach.
• D) The plan for creating the compensation system is the most important aspect of the strategy.

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Definitions:

Contribution Approach

A cost accounting approach that separates fixed and variable costs to determine the contribution margin per unit and understand the impact on net income.

Financial Statements

Documents that provide an overview of a company’s financial condition, including balance sheet, income statement, and cash flow statement.

Sunk Cost

A cost that has already been incurred and that cannot be changed by any decision made now or in the future.

Potential Benefit

The expected advantages or positive outcomes that may result from a specific action, investment, or decision.