Companies provide compensation and benefits to employees. Read the description in each box
and identify whether it best describes base pay, variable pay, or benefits.
1. Examples include
paid time off, health
insurance, and
retirement savings
plans.
4. Compensation found
in each and every
paycheck.
7. total compensation =
base pay +
10. The larger type of
compen- sation if one
car salesperson earns a
$40,000 per year salary
and the other sales-
person sells 350 cars, of
which he earns
$100/car.
2. Examples include
sales commissions,
performance bonuses,
and safety awards.
5. Has either monetary
or nonmonetary value.
8. Not a form of
compensation.
11. Provides incentives
to employees who
exceed expectations.
3. Examples include
annual salaries and
hourly wages.
6. Compensation not
necessarily found in
each and every
paycheck.
9. A salesperson gets
this type of
compensation when she
earns $25 for each
computer she sells.
12. When companies
have a limited amount of
money, they can use
this to help recruit and
retain workers.