Three Basic Methods of Job Evaluation Are Currently in Use

question 48

True/False

Three basic methods of job evaluation are currently in use: ordering, classification, and point methods.

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Definitions:

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted, indicating how much contributes to covering fixed costs.

Indirect Expenses

Costs that are not directly tied to a specific product, service, or department and need to be allocated, such as utilities or rent.

Contribution Margin

The amount remaining from sales revenue after variable costs are deducted, indicating how much contributes to covering fixed costs and generating profit.

Indirect Costs

Expenses not directly tied to a specific product or service, such as overhead, administrative salaries, and utilities.