What Is Not a Desired Result of an Employee Bonus/incentive

question 43

Multiple Choice

What is not a desired result of an employee bonus/incentive 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:

External Reporting

The process of preparing and presenting financial and other information to parties outside the organization.

Traditional Format

In accounting, it refers to the conventional way of reporting income statements, segmenting costs into categories like cost of goods sold, operating expenses.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including raw materials, labor, and manufacturing overhead.

Variable Expenses

Costs that vary directly with the level of production or sales volume, such as raw materials and commission fees.