Regarding Incentives, Which of the Following Statements Is FALSE

question 145

Multiple Choice

Regarding incentives, which of the following statements is FALSE?

• A)Our actions are energized by a mixture of internal needs and external incentives.
• B)Incentive value cannot be used to explain the drives for success, status, and approval.
• C)Some goals are so desirable that they can motivate behavior in the absence of an internal need.
• D)Some goals are so low in incentive value that they may be rejected even if they could meet the internal need.

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Definitions:

Plantwide Overhead Rate

An overhead allocation rate that applies uniformly across an entire manufacturing plant, instead of being divided by department or activity.

Machine Hours

A measure of the amount of time a machine is operated within a given period.

Indirect Labor

Indirect labor costs refer to wages paid to employees who are not directly involved in production work, such as supervisors, maintenance workers, and other support staff.

ABC Implementation

The process of introducing Activity-Based Costing into an organization to allocate costs more accurately to products, services, and customers.