Your organization has asked you to prepare a compensation budget by taking into account the following variables: current employees' wages,anticipated merit increases,seniority increases,as well as expected turnover.What kind of compensation budgeting process is your organization using?
A) zero-based
B) top-down
C) bottom-up
D) break-even

Question

Quizplus · Accepted Answer

The compensation budgeting process used by the organization is bottom-up, because it involves taking into account multiple variables (such as current employee wages, merit increases, seniority increases, and expected turnover) that affect compensation at the individual employee level. This suggests that the budget is being prepared from the ground up, based on input and analysis from the HR department and/or individual managers.

Your Organization Has Asked You to Prepare a Compensation Budget