Which of the Following Is Not a Characteristic of Effective

question 31

Multiple Choice

Which of the following is not a characteristic of effective reward and incentive systems?

• A) Performance measures are clear and highly visible.
• B) The structure is fixed to assure employees of consistency.
• C) The compensation system is perceived as fair and equitable.
• D) Objectives are well understood, and broadly accepted.

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Definitions:

Depreciation Expense

The methodical distribution of a physical asset's cost throughout its lifespan, accounting for depreciation or becoming outdated.

Operating Cash Flow

The cash generated from the normal operating activities of a business, reflecting its ability to generate sufficient cash to fund its operations.

Variable Cost

Expenditures that fluctuate based on the volume of goods or services provided by a business.

Cash Break-Even

The point at which a company's cash inflows match its cash outflows, indicating no net gain or loss.