C12 Variable Pay 1 – 2 Exam Study
Guide Solutions
Fixed Pay - ANSWER✔✔-Nondiscretionary compensation that does not
vary according to performance or results
Variable Pay - ANSWER✔✔-Discretionary compensation that is contingent
on performance or results achieved
Fixed Pay Based on EE Value - ANSWER✔✔-Value related to labor market.
Value related to performance. Value related to skills and competencies.
Variable Pay Based on Results - ANSWER✔✔-Organizational, group or
individual. Performance based differentiation. Flexible and adaptable to
the circumstances.
Variable Pay Goal - ANSWER✔✔-Improve organizational performance.
Must know business strategy and objectives in order to develop a plan.
3 Primary Business Strategies - ANSWER✔✔-Operational Excellence,
Product/Service Leadership and Customer Intimacy.
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, Operational Excellence - ANSWER✔✔-Price/cost based strategy. Strive to
minimize waste and reward efficiency.
Product/Service Leadership - ANSWER✔✔-Innovation/Product
development based strategy. Encourages imagination and ability to
commercialize fast.
Customer Intimacy - ANSWER✔✔-Relationship based strategy. Build
bonds and meet or exceed needs which builds loyalty.
Operational Excellence Business Objectives - ANSWER✔✔-Product quality,
operational efficiency improvement, process improvement and cost
reduction.
Product/Service Leadership Business Objectives - ANSWER✔✔-Market
share product development, time to market
Customer Intimacy Business Objectives - ANSWER✔✔-Opinion of
products, quality, retention and satisfaction
Business Life Cycle - ANSWER✔✔-Start up, growth, mature and decline
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Guide Solutions
Fixed Pay - ANSWER✔✔-Nondiscretionary compensation that does not
vary according to performance or results
Variable Pay - ANSWER✔✔-Discretionary compensation that is contingent
on performance or results achieved
Fixed Pay Based on EE Value - ANSWER✔✔-Value related to labor market.
Value related to performance. Value related to skills and competencies.
Variable Pay Based on Results - ANSWER✔✔-Organizational, group or
individual. Performance based differentiation. Flexible and adaptable to
the circumstances.
Variable Pay Goal - ANSWER✔✔-Improve organizational performance.
Must know business strategy and objectives in order to develop a plan.
3 Primary Business Strategies - ANSWER✔✔-Operational Excellence,
Product/Service Leadership and Customer Intimacy.
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 1/8
, Operational Excellence - ANSWER✔✔-Price/cost based strategy. Strive to
minimize waste and reward efficiency.
Product/Service Leadership - ANSWER✔✔-Innovation/Product
development based strategy. Encourages imagination and ability to
commercialize fast.
Customer Intimacy - ANSWER✔✔-Relationship based strategy. Build
bonds and meet or exceed needs which builds loyalty.
Operational Excellence Business Objectives - ANSWER✔✔-Product quality,
operational efficiency improvement, process improvement and cost
reduction.
Product/Service Leadership Business Objectives - ANSWER✔✔-Market
share product development, time to market
Customer Intimacy Business Objectives - ANSWER✔✔-Opinion of
products, quality, retention and satisfaction
Business Life Cycle - ANSWER✔✔-Start up, growth, mature and decline
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 2/8
