In the context of HRIS budgeting, what does the acronym AEC stand for?

• A. Average Employee Contribution
• B. Annual Efficiency Cost
• C. Administrative Expense Charge
• D. Added Employee Credit

Answer: (A)

Average Employee Contribution is the per‑employee share of HRIS costs used in budgeting. It represents how much, on average, employees are expected to contribute toward paying for the HR information system, turning the total expense into a per-person figure for planning and cost-sharing. This helps with forecasting funding, comparing periods, and allocating costs across teams. The other terms don’t fit this budgeting context: they refer to different financial concepts or are not specific to employee-funded portions of HRIS costs. For example, a per‑employee figure like $200, derived from a $120,000 total cost and 600 employees, illustrates how the budget might be distributed among staff.