Which of the Following Is a Major Issue Surrounding "Stretch

question 52

Multiple Choice

Which of the following is a major issue surrounding "stretch goals"?

• A) They demoralize the employee.
• B) They increase voluntary turnover.
• C) They could be considered unethical for several reasons.
• D) They cause disruptive behaviours to the point that they are more costly to the organization than they are financially advantageous.

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Definitions:

Contribution Margin

The amount of revenue from sales that exceeds variable costs, contributing to covering fixed costs and generating profit.

Variable Expenses

Costs that change in relation to the business’s activity level or volume, similar to variable costs.

Fixed Expenses

Costs that do not vary with the level of production or sales within a certain range.

Special Order

An order for goods or services that is outside the company's normal scope of work, which can often require a unique pricing strategy and cost analysis.