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Question
Each of the following is true regarding individual PFP plans EXCEPT:
A) Individual PFP plans can be divided into merit pay systems and incentive systems tied to production rates.
B) For a merit pay plan, performance is generally measured through performance appraisal.
C) Incentive plans rely on some countable result as a basis for setting the PFP rate.
D) The greatest strength of the merit pay plan is its ability to create a clear linkage between employee performance and pay.
E) Incentive pay is based on units produced and provides the closest connection between performance and pay.
Answer
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