1. Introduction: Setting the Stage

Aims and objectives of this chapter

• Set the stage for the discussions in this book

• Discuss the concept of costs versus expenses

• Explain the concepts of OPEX and CAPEX

• Examine various compensation and benefit elements

• Discuss in detail the concept of base salary

• Discuss the treatment of compensation and benefit elements within current accounting systems and structures

• Discuss the current accounting for human resource cost outlays

• Explain the current payroll accounting process for hourly and salaried employees

This introductory chapter examines how finance and accounting principles apply to compensation and benefit program design. The discussion analyzes the current connections and proposes various ...

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