A Major Limitation of the Factor Method Is That It

question 4

True/False

A major limitation of the factor method is that it does not allow several factors to be used together.

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Definitions:

Service Period

The period of time an employee must work to earn benefits or rights under an employment contract or agreement.

Fair Value

The estimated market price of an asset or liability, reflecting current market conditions rather than historical cost.

Stock Appreciation Rights

A type of bonus compensation given to employees that is equivalent to the appreciation (increase in value) of the company stock over a set period.

Compensation Plan

A detailed plan that outlines the salary, wages, benefits, and incentives for employees, designed to motivate and reward them.