Which of the following statements best explains why bonuses are less costly to the organization than general wage increases?
A)Bonuses receive preferential tax treatment.
B)The annual amount given as a bonus tends to be smaller than the annual amount given as a raise.
C)Bonuses are frequently given in the form of non-cash items.
D)Bonuses do not become part of employees' base wages.

Question

Quizplus · Accepted Answer

Bonuses do not become a regular part of an employee's base salary, whereas wage increases permanently increase an employee's salary and can have long-term financial implications for the organization. Therefore, bonuses are generally less costly to an organization in the long run.

Which of the Following Statements Best Explains Why Bonuses Are