Identify the Item Below That Is Not a Desired Result

question 28

Multiple Choice

Identify the item below that is not a desired result of an employee bonus system.

• A)Employees may recommend unnecessary services to customers in order to exceed set sales quotas and earn a bonus.
• B)Employees may look for ways to improve service.
• C)Employees may analyze their work environment and find ways to cut costs.
• D)Employees may work harder and may be more motivated to exceed target goals to earn a bonus.

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Definitions:

Labor Efficiency Variance

A measure of the difference between the actual number of labor hours used and the standard number of labor hours expected to produce a certain level of output.

Materials Quantity Variance

The financial difference between the actual quantity of materials used in production and the standard expected quantity.

Favorable

A term used to describe outcomes or variances that are positive or beneficial to a business, such as lower costs or higher revenues than expected.

Unfavorable

A term used in budgeting and variance analysis indicating costs exceeded the budget or revenue fell short.