Which of the Following Goals of a Performance Evaluation System

question 157

Multiple Choice

Which of the following goals of a performance evaluation system is accomplished when bonuses are provided to subunit managers who achieve performance targets?

• A) Benchmarking
• B) Motivating unit managers
• C) Promoting goal congruence
• D) Communicating expectations

Understand the strategic implications of choosing between variable and absorption costing for internal management analysis.

Understand the difference between absorption costing and variable costing and how each affects operating income.

Comprehend how production levels affect operating income under both costing methods.

Recognize the components and significance of contribution margin in decision-making.

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Definitions:

Strong Axiom

An advanced principle or rule, often within a specific field of study, that has widespread acceptance and provides a solid foundation for further developments.

Revealed Preferences

A theory in economics that infers consumer preferences based on the observation of consumer behavior and choices under constraint.

Bundle

A collection of goods or services sold as a single package, often at a discounted price compared to purchasing each item separately.

Revealed Preferred

A concept in microeconomic theory suggesting that consumers' preferences can be determined by observing their choices and behaviors in various situations.