The Correct Statement Concerning Intrinsic and Extrinsic Rewards Is

question 21

Multiple Choice

The correct statement concerning intrinsic and extrinsic rewards is:

• A) A holiday paid for by the company for an executive is an extrinsic reward
• B) Extrinsic rewards are non-cash incentives
• C) A cash bonus paid to an executive by the company is an intrinsic reward
• D) All of the statements are true

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Definitions:

Marginal Cost

The additional expense incurred from generating one more unit of a product or service.

Total Fixed Costs

The total of all expenses that stay unchanged no matter the amount of production or output.

Average Variable Costs

The variable cost (e.g., labor, raw materials) per unit of output, calculated by dividing total variable costs by the quantity of output produced.

Average Total Costs

The per unit cost of production, calculated by dividing the total cost of production by the number of units produced.