Which of the Following Statements About Activity Quotas Is True

question 51

Multiple Choice

Which of the following statements about activity quotas is true?

• A)In order to be fair,each salesperson should have the same level for each activity measured
• B)Top management should set activity quota levels based on corporate objectives
• C)Territorial differences should play a major part in setting activity quota levels
• D)The major source of information used for setting activity quota levels is to examine the competition and match or better their levels
• E)None of the above statements about activity quotas is true

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Definitions:

Bonuses

Additional financial rewards given to employees as an incentive or reward for their performance.

Standard Costs

Predetermined costs serving as a benchmark for evaluating the actual cost performance of operations.

Measuring Efficiency

The process of evaluating the performance of a system, organization, or component by comparing its output with its input.

Variable Cost System

An accounting approach where costs that vary directly with the level of output are only recorded as product costs, contrasting with full costing methods.