In the Opening Case in Chapter 10,a Secretary Complains That

question 85

Multiple Choice

In the opening case in Chapter 10,a secretary complains that janitors make more money than she does.Her complaints and Dr.Smith's response show that Sigma's compensation system:

• A) may lack internal equity.
• B) is a decentralized pay system.
• C) relies on individual-based pay.
• D) uses variable pay to induce performance.

---

Definitions:

FVTOCI

stands for Fair Value Through Other Comprehensive Income, a classification under IFRS for financial assets that are measured at fair value with fluctuations recorded in other comprehensive income.

Share Price

The price at which a single share of a company's stock is bought or sold in the market.

ASPE

Accounting Standards for Private Enterprises, a set of accounting practices and principles for private companies in Canada.

Equity Basis

An accounting method where investments are recorded at the original cost plus or minus any subsequent changes in the value of the invested assets, often used in consolidation.