Springfield Motors Has an HR Policy That Does Not Allow

question 41

Multiple Choice

Springfield Motors has an HR policy that does not allow its newly hired employees to work on committee projects or get involved in the union meetings. This is done to ensure that the new employees can concentrate on their work and do not get distracted with other issues. Which of the following allocation norms has Springfield Motors adopted?

• A) Standard norm
• B) Equity norm
• C) Reciprocity norm
• D) Need norm
• E) Equality norm

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Definitions:

GAAP

Stands for Generally Accepted Accounting Principles, which are a common set of accounting principles, standards, and procedures that companies use to compile their financial statements.

Routine Maintenance

Regular, scheduled work done on equipment, machines, or systems to prevent unexpected breakdowns and to keep them operating efficiently.

Capitalized

The process of recording a cost or expense on the balance sheet for the purposes of spreading out the expense over the useful life of an asset, rather than charging it to expense all at once.

Interest Cost

The total cost of borrowing funds, typically expressed as a percentage of the borrowed amount, over the period of the loan.