Generally, the Current and Deferred Types of Bonus Payment Options

question 65

Multiple Choice

Generally, the current and deferred types of bonus payment options currently in use tend to focus the manager's attention on short-term performance measures, most commonly:

• A)Division profit.
• B)After tax corporate profit.
• C)Cash flow.
• D)Growth in firm value.
• E)Stock price.

---

Definitions:

Marginal Revenue

Extra earnings received from disposing of an additional unit of a good or service.

Market Price

The price of a commodity when sold in a given market, reflecting supply and demand dynamics.

Profit-Maximizing

The process or strategy of setting prices or production levels to achieve the highest possible profit.

ATC

Average Total Cost, calculated by dividing total cost by the quantity of output produced.