WorldatWork Certification CECP Dumps PDF

Fixed costs must be kept to a minimum, but variable costs can fluctuate since they tend to correlate with revenue.

Variable costs often have a heavier focus than fixed costs, which applies to all areas, including compensation.

Fixed costs and variable costs are equally important and both should be kept to a minimum.

Fixed costs are not a concern because they cannot be changed, so the focus is primarily on variable costs.

Variable pay costs as a percent of total compensation

Total compensation expense for the business, including base pay and variable pay

Reward costs as a percent of total operating costs

The organization’s market compa-ratio

To differentiate company financial data from industry competitors to prevent loss of proprietary information

To provide subjective information to key constituents that reflects the company’s performance in the most favorable manner depending on stakeholder priorities

To create a historical record of financial performance and identify trends that may justify changes in strategy

To promote consistency of communication regarding company performance and value

Variable costs decrease

Fixed costs decrease

Variable costs increase and consume a higher percent of revenue

Fixed costs remain the same and consume a lower percent of revenue