The terms salary and wages are often used interchangeably, but there can be an important difference. Salary usually applies to managers, supervisors, and executives who receive a fixed amount each pay period regardless of the number of hours worked.

Question

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The statement is correct in stating that salary usually applies to managers, supervisors, and executives who receive a fixed amount each pay period regardless of the number of hours worked. Wages, on the other hand, are typically associated with hourly or daily pay for non-exempt or lower-level employees.

The Terms Salary and Wages Are Often Used Interchangeably, but There