Which of the Following Is Not Cited as a Limitation

question 80

Multiple Choice

Which of the following is not cited as a limitation of merit-based pay?

• A)They are typically based on an annual performance appraisal and thus are only as valid as the performance ratings.
• B)The pay raise pool fluctuates on economic or other conditions that have little to do with individual performance.
• C)Unions typically resist merit pay plans.
• D)People are paid according to seniority.

---

Definitions:

Sales

Revenue generated from goods or services exchanged by an entity during its normal business operations.

Break-even Analysis

An assessment to determine the sales volume at which total revenues equal total costs, indicating no net loss or gain.

Cost-volume-profit Analysis

An accounting technique that analyzes how changes in costs, sales volume, and price affect a company's profit.

Contribution Margin Ratio

The contribution margin ratio quantifies the portion of sales revenue that is not consumed by variable costs and is available to cover fixed costs and generate profit.