The Most Common Incentive Compensation Plans Include All of the Following

question 4

Multiple Choice

The most common incentive compensation plans include all of the following EXCEPT:

• A)extrinsic rewards.
• B)stock options.
• C)profit sharing.
• D)employee stock ownership plans.

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Definitions:

Unit Contribution Margin

The amount that the sale of one unit contributes towards covering fixed costs, calculated as the sales price per unit minus variable costs per unit.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Advertising Campaign

A series of advertisement messages that share a single idea and theme intended to achieve specific business objectives.

Contribution Margin Ratio

A measure of how a company's sales revenue contributes to covering its variable costs.