Question Detail
Question
Which compensation philosophy views employees' compensation as a cost to the organization, suggesting that salaries should be reduced to maximize profit?
Correct Answer
Option C is the correct answer.
Detailed Explanation
According to page 9, the philosophy of cost minimisation, also known as the negative philosophy, suggests that employees' compensation is a cost to the organisation, and salaries should be reduced to maximise profit.
Hint
Think about which view treats compensation purely as an expense to be cut.