Which of These Performance-Based Rewards Tends to Create the Lowest

question 12

Multiple Choice

Which of these performance-based rewards tends to create the lowest E-to-P expectancy?

• A)Share options
• B)Individual piece rates
• C)Gainsharing
• D)Individual commissions
• E)Team bonuses

---

Definitions:

Absorption Costing

An accounting tactic where the entirety of manufacturing costs—direct materials, direct labor, and manufacturing overhead, both variable and fixed—are included in calculating a product’s cost.

Unit Product Cost

The total expense incurred to produce and deliver one unit of a product, including both direct and indirect costs.

Variable Costing

An accounting technique that entails including only the variable costs of production, like direct materials, labor directly involved in manufacturing, and variable factory overhead, into the pricing of products.

Unit Product Cost

The total cost (fixed and variable) incurred to produce, store, and sell one unit of a product.