Assume That Managers Are Rewarded for Reducing Product Costs as Calculated

question 142

Multiple Choice

Assume that managers are rewarded for reducing product costs as calculated by the accounting system.In keeping with the theme that "you get what you measure," if a company switches its overhead application basis from direct labor hours to machine hours, what would you expect to happen?

• A)Machine hours will increase
• B)Machine hours will decrease
• C)Total costs will increase
• D)Output will reduce

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Definitions:

Narcissism

A personality trait characterized by an inflated sense of self-importance, a deep need for excessive attention and admiration, and a lack of empathy for others.

Rebellion

An act of violent or open resistance to an established government or ruler.

Material Parenting

The practice of buying material goods to show love, reward, or communicate with one's children, often emphasizing the role of consumer goods in child-rearing.

Negative Reinforcement

In behavioral psychology, the strengthening of a behaviour because a negative condition is stopped or avoided.