Ashance Inc

question 100

Multiple Choice

Ashance Inc.,a manufacturing company,includes bonuses based on the year's profits or other measures related to the organization's goals as an incentive method.Sometimes,to gain tax advantages,the actual payment of the bonus is deferred.Which of the following is being exemplified in this scenario?

• A) Long-term incentive
• B) Balanced scorecard
• C) Piecework plan
• D) Employee stock incentive plan
• E) Short-term incentive

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Definitions:

Direct Labor

Refers to the wages and benefits for the employees who are directly involved in the manufacturing or production process.

Direct Materials

Raw materials that are directly traceable to the production of a specific good or service and constitute a part of the finished product.

Fixed Factory Overhead

Comprises all the indirect costs associated with operating a factory that do not vary with production levels, such as rent, depreciation, and utilities.

Static Budget

A fixed budget established at the beginning of a period, not adjusted for changes in activity or actual performance levels.