What term describes compensation that excludes benefits, bonuses, or commissions?

What term describes compensation that excludes benefits, bonuses, or commissions?

• A. Balance-sheet approach
• B. Base salary
• C. Behavioral interview
• D. Beneficiary

Answer: (B)

The fixed, guaranteed cash pay an employee receives for performing their job is base salary. It represents the predictable, ongoing portion of earnings, excluding variable components like bonuses or commissions and non-cash benefits. In total compensation discussions, base salary is the core fixed component used for budgeting and market positioning. The other terms don’t describe this concept: a balance-sheet approach is a financial analysis method, a behavioral interview is a hiring method to assess past actions, and a beneficiary is someone who receives benefits from a plan.

The fixed, guaranteed cash pay an employee receives for performing their job is base salary. It represents the predictable, ongoing portion of earnings, excluding variable components like bonuses or commissions and non-cash benefits. In total compensation discussions, base salary is the core fixed component used for budgeting and market positioning. The other terms don’t describe this concept: a balance-sheet approach is a financial analysis method, a behavioral interview is a hiring method to assess past actions, and a beneficiary is someone who receives benefits from a plan.