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NEW QUESTION: 1
Which of the following is considered indirect compensation?
A. base pay
B. leave of absence
C. variable compensation
D. performance bonus
Explanation: A leave of absence is considered indirect compensation. Compensation is indirect when it cannot easily be assigned a monetary value. Since an employee is not paid during a leave of absence, granting one is not a direct expense for the company. Of course, the employee's absence may result in diminished productivity and therefore less revenue for the company, but it is difficult to quantify this loss.
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