The Type of Compensation Plan That Focuses on the Difference

question 9

Multiple Choice

The type of compensation plan that focuses on the difference between actual performance (sales, operating income, etc.) and budgeted performance refers to:

• A) The use of flexible budgets for performance evaluation.
• B) The use of the master budget for performance evaluation.
• C) The use of "rolling financial forecasts."
• D) The use of a fixed-performance contract.
• E) The use of a Kaizen forecast.

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Definitions:

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for quick action in emergencies; "fight or flight" response.

Parasympathetic Nervous System

Part of the autonomic nervous system responsible for rest and digestion, counterbalancing the sympathetic nervous system's fight or flight response.

Behavioral Observation

A method used in psychological research and practice where the actions or behaviors of subjects are watched and recorded.

Physiological Measurement

The process of assessing the biological functions and processes of the human or animal body, often for the purpose of diagnosing diseases or assessing health.