Linking Rewards to Performance

question 31

Multiple Choice

Linking rewards to performance:

• A)helps to motivate managers
• B)allows companies to charge premium prices
• C)should only be based on financial information
• D)All of these answers are correct.

---

Definitions:

Variable Cost

Expenses that vary directly with the level of production or sales volume, such as raw materials and direct labor costs.

Break-Even Analysis

A technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output.

Price-Setting Process

The method used by businesses to determine the selling price of their products or services, taking into account production costs, market demand, competition, and profit margins.

Product Life Cycle

The stages through which a product goes from its introduction into the market through its growth, maturity, and eventually, decline.