A Web Design Company,Gen Max,is Expanding Rapidly and Needs to Hire

question 79

Multiple Choice

A web design company,Gen Max,is expanding rapidly and needs to hire middle managers in a climate where being first to market is important.Which incentive plan for these employees would best help the firm achieve its first-to-market goal?

• A)Pay for performance
• B)Merit raises
• C)Profit-sharing
• D)Gainsharing
• E)Pay-for-knowledge

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Definitions:

Overapplied Overhead

A situation in which the overhead allocated to products exceeds the actual overhead costs incurred.

Actual Direct Labour Hours

The real number of labor hours spent on a production process as opposed to planned or estimated hours.

Manufacturing Overhead Cost

Indirect costs related to manufacturing that are not directly tied to a specific product, such as factory maintenance and utilities.

Normal Costing System

An accounting system that assigns costs to products based on the normal levels of materials, labor, and overhead.