Which of the Following Is a True Statement About Financial

question 69

Multiple Choice

Which of the following is a true statement about financial incentives?

• A) They are only given when objectives are exceeded.
• B) They can be given for acquiring additional skills.
• C) They are decided by the supervisors.
• D) They are only given in the form of intrinsic rewards.

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Definitions:

Relevant Costs

Costs that should be considered when making a decision because they will be affected by the decision; these costs are future-oriented and differ among alternatives.

Sunk Costs

Costs that have already been incurred and cannot be recovered or altered by any current or future actions.

Unproductive

Refers to resources or activities that do not contribute to the output or efficiency of a process or operation.

Fixed Costs

Costs that do not change in total with changes in the volume of production or sales, such as rent, salaries, and insurance.