Asked by Adriana Davis on Jul 20, 2024
Verified
A compensation budget is a forecast of what the firm expects to spend on compensation in the coming year.
Compensation Budget
The allocated amount of money that an organization plans to spend on employee salaries, wages, and other benefits over a specific period.
Forecast
The process of making predictions about future events, often based on analysis of data and trends.
- Comprehend the importance and components of a compensation budget.
Verified Answer
JH
Jonah HortonJul 25, 2024
Final Answer :
True
Explanation :
A compensation budget is indeed a forecast of the amount a firm intends to spend on compensating its employees in the future. This budget can include salaries, bonuses, benefits, and other forms of compensation. By creating a compensation budget, companies can plan their expenses, manage costs, and ensure they remain competitive in attracting and retaining talent.
Learning Objectives
- Comprehend the importance and components of a compensation budget.
Related questions
What Main Indicators Should Firms Examine in the Process of ...
In the Bottom-Up Approach to Compensation Budgeting,a Budgeted Amount Is ...
Which of the Following Items Is a Component of the ...
Explain the Difference Between a Reward Strategy and a Compensation ...
As the Owner of a Real Estate Firm with Multi-Office ...