Which of the Following Is True of Incentive Pay

question 19

Multiple Choice

Which of the following is true of incentive pay?

• A)Incentive pay is considered part of an employee's fringe compensation.
• B)The criteria for judging an award tends to be objective,such as quantity produced.
• C)Award levels are subjective.
• D)The amount of the award paid for attainment of goals is not communicated in advance.

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Definitions:

Inventory

The total amount of goods and materials held in stock by a business, including raw materials, work-in-progress, and finished goods.

Throughput

The rate at which a system or process produces goods or handles material, often measured within a specific time frame.

Operating Expenses

Costs associated with the day-to-day functioning of a business that are not directly tied to production, such as salaries and rent.

Production Processes

Refers to the sequence of activities or operations involved in transforming raw materials into finished goods.