Which of the Following Is Not Characteristic of Output?based Compensation

question 117

Multiple Choice

Which of the following is not characteristic of output?based compensation systems?

• A) can be used to compensate individuals
• B) can be used to compensate groups
• C) can include a base salary
• D) often include an upper limit on how much an individual can be compensated each day
• E) need to be linked to quality as well as quantity to be successful

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Definitions:

Balance Sheet Approach

A method of estimating an organization's value based on the assets, liabilities, and equity recorded in its balance sheet.

Allowance for Doubtful Accounts

A contra asset account used to estimate the amount of receivables that may not be collectible.

Accounts Receivable

Due amounts from clients to a company pertaining to goods or services delivered but payment not received.

Bad Debts Expense

An estimated expense that reports the cost of accounts receivable that a company does not expect to collect.