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Which of the following statements is/are true regarding compensation? (A) Fixed compensation is...

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Accounting

Which of the following statements is/are true regarding compensation?

  1. (A) Fixed compensation is generally not linked to measured performance; i.e., it is independent of measured performance.

  2. (B) Properly designed management control systems have contingent compensation items but not fixed compensation items.

Multiple Choice

  • Only A is true.

  • Only B is true.

  • Both of these are true.

  • None of these is true.

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