Rewarding Employees in One Production Department for Meeting or Exceeding

question 127

Multiple Choice

Rewarding employees in one production department for meeting or exceeding standard cost benchmarks can create new sets of problems for organizations. Which of the following is not one of them?

• A) An unfavourable efficiency variance because of rework needed on work from another department
• B) Variances in another production department
• C) Unmotivated employees in that production department
• D) Poor quality finished goods