Difficulties in Setting Compensation Packages for Global Salesforces Include

question 55

Multiple Choice

Difficulties in setting compensation packages for global salesforces include:

• A)unions may restrict wage options.
• B)some cultures are not motivated to work harder regardless of monetary incentives.
• C)local firms may protest that the MNC is stealing the best talent with wages out of line with local standards.
• D)culture may dictate that people of the same rank should not be compensated differently regardless of performance.
• E)all of the above

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Definitions:

Variable Expense Ratio

A metric that compares variable expenses (costs that change with production levels) to total sales, indicating how much revenue is consumed by variable costs.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted, indicating the contribution towards covering fixed costs and generating profit.

Contribution Format

An income statement variant that divides expenses into variable and fixed groups, emphasizing the contribution margin.

Break-even Point

The point at which total costs and total revenue are equal, leading to neither profit nor loss.