_____ Theory Argues That Performance-Based Pay Is the Optimal Compensation

question 5

Multiple Choice

_____ theory argues that performance-based pay is the optimal compensation choice for complex jobs, where monitoring employee performance is difficult.

• A)Reinforcement
• B)Goal-setting
• C)Agency
• D)Expectancy

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Definitions:

Absorption Costing

A technique in accounting where all costs incurred from manufacturing, like direct materials, direct labor, and both kinds of manufacturing overhead (variable and fixed), are factored into the product's pricing.

Unit Product Cost

The total cost incurred to produce, bundle, and ready one unit for sale, including both direct and allocated overhead costs.

Absorption Costing

An accounting method that includes all direct costs and allocated indirect costs (both fixed and variable) in the cost of a product.

Variable Costing

An accounting method that includes only variable costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of goods sold and excludes fixed manufacturing overhead.