For Incentive Plans to Be Successful,one of the Most Critical

question 81

True/False

For incentive plans to be successful,one of the most critical requirements is that managers be willing to grant incentives based on differences in individuals,teams,or organizational criteria.

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Definitions:

Profit-volume Chart

A graphical representation that shows the relationship between a company's profits and its volume of sales.

Sales Mix

The proportion of different products or services that a company sells, affecting its overall profitability due to varying margins.

Margin Of Safety

The difference between actual sales and break-even sales, indicating the amount by which sales can drop before the business incurs a loss.

Contribution Margin Ratio

A measure of the profitability of a product, defined as the difference between the sales price and variable costs, expressed as a percentage of sales price.