The Incentive Principle States That a Person Is More Likely

question 37

Multiple Choice

The incentive principle states that a person is more likely to do something if:

• A) the opportunity costs are high.
• B) the benefits from doing it increase.
• C) everyone else is doing the same thing.
• D) he is paid to do it.

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Definitions:

Direct Method

A method of allocating service department costs directly to production departments without any intermediate allocation steps.

Personnel Department

is the department within an organization responsible for hiring, training, and managing employees, as well as dealing with personnel-related issues.

Number Of Employees

The total number of individuals working for a company, including full-time, part-time, and temporary staff.

Direct Method

A method of allocating service departments' costs directly to production departments without intermediate allocations.