Which of the following statements is TRUE of a variable wage formula provision?
A) A variable wage formula provision is most commonly found in the private sector.
B) According to the variable wage formula provision, future wage increase is based on the consumer price index.
C) According to the variable wage formula provision, future wage rate increases depend on the employer's future ability to pay.
D) Under the variable wage formula provision, employees receive a share of the employer's profits in addition to their regular wages.

Question

Quizplus · Accepted Answer

According to the variable wage formula provision, future wage rate increases depend on the employer's future ability to pay. Option A is incorrect because the provision can be found in both the private and public sectors. Option B is incorrect because the specific factors on which future wage increases are based may vary (not limited to the consumer price index). Option D is incorrect because profit-sharing is a separate provision from the variable wage formula.

Which of the Following Statements Is TRUE of a Variable