Your Organization Has Asked You to Prepare a Compensation Budget

question 40

Multiple Choice

Your organization has asked you to prepare a compensation budget by taking into account the following variables: current employees' wages,anticipated merit increases,seniority increases,as well as expected turnover.What kind of compensation budgeting process is your organization using?

• A) zero-based
• B) top-down
• C) bottom-up
• D) break-even

---

Definitions:

Facility Cost

The total expense incurred from operating a building or service location, including maintenance, utilities, rent, and other associated costs.

Reorder Interval

The time between placing orders for inventory replenishment to ensure stock levels remain adequate.

Inventory Cost

Expenses related to holding and managing inventory, including storage, insurance, taxes, and costs associated with unsold or obsolete items.

Customer Service Level

A measurement of the ability of a company to provide services to its customers within a specified time frame and quality standard.