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WorldatWork Certification
CECP Exam
WorldatWork.CECP.v2022-06-21.q36 Practice Test
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Question
36
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.
Correct Answer:
C
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