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Questions # 21:

Which of the following is a type of variable pay?

Options:

A.

Salary

B.

Piece rate

C.

Hourly rate

D.

Commissions   

Questions # 22:

Which of the following is the best example of a variable cost?

Options:

A.

Audit fees

B.

Rent

C.

Maintenance

D.

Shipping

Questions # 23:

Which of the following is the best example of applying business acumen to data analysis?

Options:

A.

Compiling data needed to calculate salary budgets and merit increases

B.

Identifying trends and key messages emerging over time

C.

Reviewing historical trends to complete annual budgets

D.

Providing quarterly incentive estimates for accruals

Questions # 24:

What best describes the primary purpose of budgeting?

Options:

A.

Limiting spending to a fixed percentage of organizational revenue

B.

Making choices about spending based on expectations of performance

C.

Increasing profitability of the business annually to maximize shareholder/owner value

D.

Complying with local legislation and maintaining accurate records to prepare financial reports and tax documents

Questions # 25:

How are the compensation communication needs of managers different from those of individual employees?

Options:

A.

They aren’t. Managers are concerned about their compensation also.

B.

They are also responsible for merit increases, incentives and hiring so they have greater information needs.

C.

They tend to have more influence, so it is important to resolve any concerns they have quickly and efficiently.

D.

They have more duties and responsibilities and are less likely to have the time to discuss compensation issues.

Questions # 26:

Which of the following is appropriate when an employee is required by the employer to attend training as a condition of employment?

Options:

A.

Appropriate study time does not count as hours worked regardless of the educational level of the training program.

B.

No training time is considered hours worked even if it is a condition of employment, since the employee is free to leave the company.

C.

Only educational programs focused on remedial education (up to eighth grade) can be excluded from the 40-hr criteria for time and a half.

D.

Even when the training is required, as long as the classes are outside working time and not on company property, they are not hours worked.

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