When Evaluating a New Compensation System,you Notice That the Compensation

question 22

Multiple Choice

When evaluating a new compensation system,you notice that the compensation cost ratio increased,while total compensation or average earnings remained static.What is a likely explanation?

• A) All employees have received some kind of raise.
• B) Total costs and/or revenues have decreased.
• C) Benefits have been removed from total compensation.
• D) There is an error in the data; this situation is not possible.

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Definitions:

Exchange Rate

The price of one currency in terms of another currency.

British Pounds

The currency of the United Kingdom, known officially as the pound sterling, symbolized as GBP.

Australian Dollar

The currency of Australia, used as the official legal tender in the country and its territories.

Euro

The official currency of the eurozone, which is a monetary union of 19 of the 27 European Union member states.