WorldatWork Certified Executive Compensation Professional CECP Question # 18 Topic 2 Discussion

WorldatWork Certified Executive Compensation Professional CECP Question # 18 Topic 2 Discussion

CECP Exam Topic 2 Question 18 Discussion:
Question #: 18
Topic #: 2

If a company has a higher percentage of employees with fixed compensation than variable compensation, what happens as revenues increase?


A.

Compensation costs eventually stabilize and become a consistent percent of revenue.


B.

Compensation costs and revenue increase at approximately the same rate.


C.

Compensation costs eventually decrease as a percent of revenue, increasing profit growth.


D.

Compensation costs remain the same as a percent of revenue until variable compensation costs exceed fixed compensation costs.


Get Premium CECP Questions

Contribute your Thoughts:


Chosen Answer:
This is a voting comment (?). It is better to Upvote an existing comment if you don't have anything to add.