Which of the following statements is(are)true regarding compensation?
(A)Fixed compensation is generally not linked to measured performance;i.e. ,it is independent of measured performance.
(B)Properly designed management control systems have contingent compensation items but not fixed compensation items.
A) Only A is true.
B) Only B is true.
C) Both A and B are true.
D) Neither A nor B is true.

Question

Which of the following statements is(are)true regarding compensation? 
(A)Fixed compensation is generally not linked to measured performance;i.e. ,it is independent of measured performance.
(B)Properly designed management control systems have contingent compensation items but not fixed compensation items.
A) Only A is true.
B) Only B is true.
C) Both A and B are true.
D) Neither A nor B is true.

Quizplus · Accepted Answer

Fixed compensation is generally not linked to measured performance, as it is independent of measured performance. On the other hand, properly designed management control systems have both contingent and fixed compensation items. Therefore, statement B is not true.

Which of the Following Statements Is(are)true Regarding Compensation