WorldatWork Certified Executive Compensation Professional CECP Question # 13 Topic 2 Discussion

WorldatWork Certified Executive Compensation Professional CECP Question # 13 Topic 2 Discussion

CECP Exam Topic 2 Question 13 Discussion:
Question #: 13
Topic #: 2

Regarding fixed and variable costs, what are Finance’s primary concerns?


A.

Fixed costs must be kept to a minimum, but variable costs can fluctuate since they tend to correlate with revenue.


B.

Variable costs often have a heavier focus than fixed costs, which applies to all areas, including compensation.


C.

Fixed costs and variable costs are equally important and both should be kept to a minimum.


D.

Fixed costs are not a concern because they cannot be changed, so the focus is primarily on variable costs.


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