The Observation That Additions to Fixed Assets Are "Lumpier" Than

question 18

Multiple Choice

The observation that additions to fixed assets are "lumpier" than additions to current assets indicates that:

• A)Fixed assets depreciate over time
• B)Fixed assets can only be acquired through external funding
• C)Current assets can be acquired in smaller increments
• D)Dollar for dollar, fixed assets are more expensive than current assets

---

Definitions:

Profit Sharing

A corporate program where employees receive a share of the company’s profits, typically provided as part of their compensation package.

Individual Incentives

Rewards or bonuses given directly to employees based on their individual performance level, achievements, or outcomes.

Straight Piecework Plan

A compensation system where workers are paid a fixed rate for each unit produced or action completed, encouraging productivity.

Differential Piece Rate Plan

A compensation system where employees are paid based on the quantity of work produced, with different rates applied based on performance levels.