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NEW QUESTION: 1
Which of the following is an example of direct compensation?
A. Employer Social Security contributions
B. 401(k) matches
C. Vacation pay
D. Variable compensation
Answer: D
Explanation:
Answer option D is correct.Direct compensation is composed of base pay (hourly wage or salary), variable compensation, and pay for performance. Vacation pay (C), 401(k) matches (B), and employer Social Security contributions (A) are examples of indirect compensation. See Chapter 6 for more information. Chapter: Compensation and Benefits Objective: Total Rewards Defined

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