Which of the Following Is NOT an Advantage of an Incentive

question 82

Multiple Choice

Which of the following is NOT an advantage of an incentive pay program?

• A)Incentives focus employee efforts on specific performance targets.
• B)Incentives are a way to increase equity and justice in an organization.
• C)Incentives are a way to distribute success among those not responsible for producing that success.
• D)Incentives are a means to reward or attract top performers when salary budgets are low.

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Definitions:

Inventory Profits

The increase in inventory value above its cost, typically due to price increases or valuation adjustments.

Direct Disposal Costs

Expenses specifically associated with the removal or disposal of a fixed asset or waste materials from an organization.

Sales Commissions

Payments made to sales personnel based on the amount of sales they generate, often calculated as a percentage of the sale price.

Days' Sales In Inventory

Days' sales in inventory is a financial metric that indicates the average time it takes for a company's inventory to turn into sales, reflecting inventory management efficiency.