Which of the Following Is True of the Pay Grade

question 57

Multiple Choice

Which of the following is true of the pay grade approach to developing a pay structure?

• A)It permits greater flexibility in moving employees from job to job.
• B)It increases the administrative burden of setting up rates of pay.
• C)It has a range spread that is smaller at higher levels.
• D)It ensures that all of the jobs have fair rates of pay.
• E)It tends to contribute to reduced labor costs.

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Definitions:

Agency Relationship

A legal bond where one party, the agent, acts on behalf of another, the principal, in dealings with third parties.

Financial Year End

Financial year end is the completion of a one-year, or 12-month, accounting period; the date when companies must finalize their financial statements and report their financial performance.

Reasonable Period

A span of time that is considered fair and appropriate in a given context, especially in legal and contractual situations.

Duty To Obey

A legal or moral obligation to follow the laws or commands of a given authority.