Which of the Following Statements Best Explains Why Bonuses Are

Multiple Choice

Which of the following statements best explains why bonuses are less costly to the organization than general wage increases?

A) Bonuses receive preferential tax treatment.
B) The annual amount given as a bonus tends to be smaller than the annual amount given as a raise.
C) Bonuses are frequently given in the form of non-cash items.
D) Bonuses do not become part of employees' base wages.