Which One of the Following Is a Reason That a Company

question 4

Multiple Choice

Which one of the following is a reason that a company may have significant deviations from budgeted performance?

• A)Actual results were compared to flexible budget amounts instead of static budget amounts.
• B)The budget was approved by the budget committee.
• C)Economic conditions may have changed since the plan was developed.
• D)A company has substantial variable costs.

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Definitions:

Equity Theory

A theory of motivation proposing that individuals are most motivated when they perceive their treatment in terms of rewards and contributions to be equal to others'.

CEOs

Chief Executive Officers, the highest-ranking individuals in a company or organization, responsible for making major corporate decisions.

Hourly Wage

Rate of pay per hour worked.

Piecework Rate

A pay system where employees are compensated based on the amount of work they produce, typically measured per piece or unit of work completed.