An Organization Should Always Communicate with Employees When Changing an Incentive

question 80

True/False

An organization should always communicate with employees when changing an incentive plan.

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Definitions:

Incremental Cash Flows

The additional cash flow a business receives from taking on a new project or investment.

Replacement Decision

The evaluation process for determining whether to repair, maintain or replace an asset or piece of equipment.

Volume Of Operations

The scale or magnitude of the business activities that a company carries out in a specific period.

Sunk Costs

Costs that have already been incurred and cannot be recovered, and thus should not be considered in new decision making.