Question Detail

IRP 321 Compensation Management policies Objective Question
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Question

According to the document, what is the primary distinction between 'wage' and 'salary' in the context of employee compensation?
Options
A Wage refers to payment to managerial employees, while salary is for production workers.
B Wage is calculated on a monthly or annual basis, while salary is for hourly-rated work.
C Wage is payment to hourly-rated production and service workers, whereas salary is paid to administrative, professional, and managerial employees.
Correct Answer
D Wage is non-monetary compensation, while salary is direct monetary compensation.
Correct Answer

Option C is the correct answer.

Detailed Explanation

Page 2 of the document states: 'A wage is used specifically to refer to payment to hourly-rated production and service workers and represents direct monetary compensation; whereas, salary is generally paid to administrative, professional and managerial employees. Salaries are calculated on a monthly or annual basis (Yoder & Staudohar, 1982).' This clearly defines the distinction based on the type of worker and the nature of the payment.

Hint

Focus on the type of employee associated with each term as described in the introduction.

Question Info

Course: IRP 321
Topic: Compensation Management policies
Type: Objective
Difficulty: Not specified
Question 1 of 59
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