MENU
Regarding cost analysis of compensation expense, which job is most likely to incur fixed costs for the company?
Suggested Answer: D
Get Premium c8 Questions
as Interactive Web-Based Practice Test or PDF
Real Exam Format
Detailed Explanations
Instant Access
Get Your Practice Test
30 comments · newest first
CR
Crista
11 months ago
Account executives can have variable pay, so not them!
JU
Julie
11 months ago
Wait, are we sure about that? I thought production workers had fixed salaries too.
WH
Whitley
11 months ago
I think IT contractors can also have fixed costs sometimes.
CE
Cecil
12 months ago
Totally agree, HR roles are typically fixed costs!
KI
Kimberlie
12 months ago
HR Director usually has a fixed salary.
CH
Charlesetta
1 year ago
I’m confused about the IT contractor; I thought they were usually paid per project, which sounds more variable than fixed.
SH
Sherill
1 year ago
I practiced a similar question, and I feel like production workers might have some fixed costs too, but I lean towards the HR Director for this one.
CE
Cecily
1 year ago
I'm not entirely sure, but I remember that account executives often have variable pay based on sales, so maybe they aren't the right choice.
LU
Luis
1 year ago
I think the HR Director might incur fixed costs since their salary is usually consistent regardless of company performance.
TO
Tonette
1 year ago
I'm a little confused on this one. I know fixed costs are those that don't change with output, but I'm not sure how that applies to different job types. I'll have to think it through carefully before answering.
WI
Willis
1 year ago
Okay, let me see. Production workers often have a base hourly wage, which would be a fixed cost. Sales and IT roles tend to have more variable compensation like commissions or hourly rates. HR directors are more likely salaried, so I'll go with A - production worker.
OR
Orville
1 year ago
Hmm, not sure about this one. I'd have to really think through the differences between production, sales, IT, and HR roles to determine which has the most fixed costs. Might need to guess on this one.
JA
Jacqueline
1 year ago
This seems like a straightforward question about fixed vs. variable costs. I'll think through the different job types and consider which one is most likely to have fixed compensation costs.
ZA
Zack
2 years ago
I agree with Janey, HR Director is likely to have fixed costs due to their seniority and responsibilities.
CH
Chun
2 years ago
The production worker seems the most likely to have fixed costs. Their hourly rate is probably pretty consistent, right?
VE
Verlene
2 years ago
Hmm, I'm going with B) Account executive. They have a base salary plus commission, so that's a pretty fixed cost for the company.
ZA
Zana
2 years ago
A) Production worker could have some fixed costs like salary, but also variable costs like overtime pay.
LA
Laura
2 years ago
I think D) HR Director could also have fixed costs with their salary and benefits.
ER
Ernie
2 years ago
C) IT contractor might have variable costs depending on the project they are working on.
TR
Tricia
2 years ago
I agree, B) Account executive seems like the most likely option for fixed costs.
JA
Janey
2 years ago
I think the HR Director would incur fixed costs.
SH
Shasta
2 years ago
Definitely the IT contractor. They're like the janitors of the tech world - always on the clock, never a dull moment!
PE
Pearlene
2 years ago
D) HR Director
GE
German
2 years ago
C) IT contractor
KA
Kate
2 years ago
B) Account executive
LE
Lettie
2 years ago
A) Production worker
AL
Alecia
2 years ago
I think the HR Director is most likely to incur fixed costs for the company. They have a consistent salary and often receive benefits.
VI
Virgie
2 years ago
Yeah, HR Director's benefits and salary are usually consistent.
SE
Selma
2 years ago
I agree, HR Director's compensation is usually fixed and stable.
RE
Reiko
2 years ago
HR Director is a good choice, they have a set salary every month.