Question
Which of the following statements regarding incentive pay plans is most accurate?
Which of the following statements regarding incentive pay plans is most accurate?
A. Unlike merit pay plans, base pay is set at the market rate for incentive plans.
B. Maximum earning potential is usually greater with an incentive plan than a traditional merit plan.
C. Once earned, the incentive pay becomes part of the employee's base pay.
D. Maximum caps are used to keep incentive pay levels even with the industry pay level.
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