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Worldatwork Exam c8 Topic 3 Question 82 Discussion

Actual exam question for Worldatwork's c8 exam
Question #: 82
Topic #: 3
[All c8 Questions]

If a company has a higher percentage of employees with fixed compensation than variable compensation, what happens as revenues increase?

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Suggested Answer: C

by Marcelle at Sep 17, 2024, 11:33 AM

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Aja
10 months ago
The correct answer is definitely C. As a finance major, I can tell you that this is a classic concept in managerial accounting. Gotta love those fixed vs. variable costs!
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Dacia
11 months ago
C seems like the most logical answer here. The fixed compensation costs will become a smaller percentage of the total revenue as the company grows, so profit margins should improve.
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Lachelle
9 months ago
Exactly, it's all about managing costs as the company scales.
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Pamella
9 months ago
So, as revenue increases, profit margins should improve.
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Jospeh
9 months ago
That makes sense, as the company grows, fixed costs should become a smaller percentage of revenue.
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Gearldine
9 months ago
I agree, C does seem like the most logical answer.
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Hillary
11 months ago
I'm not sure, but I think the answer might be D.
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Magda
11 months ago
Haha, this question is a real brain-teaser! I'm going to go with C, but I wouldn't be surprised if the answer is actually 'all of the above' and the exam is just trying to trick us.
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Dan
10 months ago
I agree with both of you. It's definitely a tricky question, but I think the key is to consider how fixed and variable compensation costs would change as revenues increase.
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Anthony
10 months ago
I'm leaning towards A, because I believe that compensation costs should eventually stabilize and become a consistent percent of revenue as the company grows.
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Tarra
10 months ago
I think you might be onto something with C. It makes sense that as revenues increase, fixed compensation costs would eventually decrease as a percent of revenue.
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Virgina
11 months ago
I'm not sure about this one. I was thinking B might be correct, but now I'm leaning towards D after reading the options again.
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Helga
10 months ago
Let's consider all options before making a decision.
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Nickole
10 months ago
I'm not sure, but D seems like a possible outcome.
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Merilyn
10 months ago
I disagree, I believe C is the best option.
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Kaitlyn
10 months ago
I think A is the correct answer.
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Lisha
11 months ago
I disagree, I believe the answer is A.
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Gladys
11 months ago
I think the answer is C.
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Jerlene
11 months ago
I think the correct answer is C. As revenues increase, the fixed compensation costs will become a smaller percentage of the total revenue, leading to increased profit growth.
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Cristina
11 months ago
That makes sense, it would lead to increased profit growth.
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Eura
11 months ago
I agree, as revenues increase, fixed compensation costs decrease as a percent of revenue.
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