Most Companies Base Their Compensation Policies on All of the Following

question 23

Multiple Choice

Most companies base their compensation policies on all of the following factors EXCEPT

• A)government legislation.
• B)cost of living.
• C)worker's commitments.
• D)worker productivity.

---

Definitions:

Contribution Margin

The margin between the income from sales and the costs that vary, pointing out the contribution towards absorbing fixed charges and producing profits.

Variable Manufacturing Costs

Costs of production that fluctuate with the volume of output, including expenses like raw materials and direct labor.

Variable Selling

Costs related to selling activities that vary with sales volume, distinct from fixed sales costs.

Fixed Manufacturing Overhead

Regular, unchanging costs associated with operating a manufacturing facility, excluding variable costs, such as rent, utilities, and salaries for management.