At Lextronica Inc., salary and wages are tied to degrees earned and skills mastered. This is an example of

A) gain sharing.
B) pay-for-knowledge.
C) piece rate.
D) cafeteria compensation.
E) profit sharing.

Pay-for-Knowledge

A compensation strategy where employees are paid based on the skills, knowledge, and abilities they bring to their job, encouraging skill development and continuous learning.

Cafeteria Compensation

A flexible employee benefits plan allowing employees to choose from a variety of pre-tax benefits, akin to selecting from a cafeteria menu.

Piece Rate

A wage calculation method where an employee is paid a fixed rate for each unit produced or action performed.