QUESTIONS AND CORRECT ANSWERS
List and describe the two types of compensation. - CORRET ANSWERS direct
compensation and indirect compensation
What are three examples of direct compensation? - CORRET ANSWERS wage, salary,
performanced based pay
What are three examples of indirect compensation? - CORRET ANSWERS employee
services, benefits, trainings and/or any other indirect form of compensation or benefit.
Define the term "job evaluation." - CORRET ANSWERS defined as the process of
comparing jobs by the use of formal and systemic procedures to determine their relative worth
within the organization
Variable compensation links an employees pay to what? - CORRET
ANSWERS organizational performance
What are three examples of variable pay? - CORRET ANSWERS profit sharing, bonuses,
stock options
Define fixed pay. - CORRET ANSWERS Base pay that is not determined by performance
What are the two most common forms of fixed pay? - CORRET ANSWERS hourly wage
or yearly salary