Which of the following statements is supported by evidence in the textbook?

A) Canadian firms spend 40 to 70 percent of their capital budgets on compensation.
B) Properly designed compensation systems usually promote unproductive behaviour.
C) Reward systems should be static and rarely reviewed.
D) Canadian firms spend 40 to 70 percent of their operating budgets on compensation.

Compensation Systems

The policies and procedures that determine how employees are paid and rewarded for their work.

Capital Budgets

Expenditure planning for long-term investments in an organization, aimed at future benefits.

Operating Budgets

Detailed financial plans that outline expected income and expenditures related to the daily operations of an organization for a specific period.