Brian,the director of compensation,has been asked by the board of directors to present the "employee cost factor" for the last 10 years at the next board meeting.Brian needs to do the following calculation for each year:
A) total compensation and benefits / FTEs
B) revenue - operating expense - pay and benefits = adjusted profit / FTEs
C) revenue - operating expense - pay and benefits = adjusted profit / pay and benefits
D) total pay and benefits / total operating expenses

Question

Quizplus · Accepted Answer

The "employee cost factor" is typically calculated as the total compensation and benefits divided by the number of full-time equivalent employees (FTEs). Option A provides this calculation and is therefore the best choice for Brian to use. Options B, C, and D do not provide the appropriate calculation for the employee cost factor.

Brian,the Director of Compensation,has Been Asked by the Board of Directors