The Higher Labour Costs Under Skill-Based Pay Indicate That It

The higher labour costs under skill-based pay indicate that it may be a better fit to companies where _____.

A) labour costs are a small share of total costs
B) labour costs are a large share of total costs
C) employees lack motivation to increase their skills
D) employees focus on seeking promotions to earn more pay
E) the focus is on average performance rather than optimum performance