Which of the Following Statements Best Explains Why an Organization

question 68

Multiple Choice

Which of the following statements best explains why an organization may want to use a team incentive plan rather than an individual incentive plan?

• A) The efforts of a team are more difficult to monitor than each employee's behavior.
• B) Team incentives work best when jobs can function independently.
• C) Free rider issues can be avoided by using team based incentives.
• D) If individual incentives are overlooked, team performance will decrease.
• E) Team incentives encourage employees to focus on communicating and cooperating with each other.

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Definitions:

Machine Breakdowns

Instances when machinery or equipment fails to operate, causing interruptions in production or operations.

Cost Variance

The differences between actual and standard costs.

Standard Cost

A detailed estimate of what a product should cost.

Actual Cost

The actual amount spent on goods, services, or other expenses, as opposed to budgeted or standard costs, including all direct and indirect costs.