Bernard Is Very Upset When He Learns That the Company

question 7

Multiple Choice

Bernard is very upset when he learns that the company is changing to a pay-for-performance system where lump-sum bonuses instead of raises will be used.The system will record the performance of each work team and reward everyone on the team equally.All of the following are likely reasons for Bernard to be upset EXCEPT

• A) Bernard's base pay will be essentially frozen.
• B) Bernard is a low to average performer on his work team.
• C) Bernard is the highest individual performer on his team.
• D) Bernard values team spirit and is concerned this system will induce competition among co-workers.

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Definitions:

Cash Payments

Payments made in the form of currency or check to settle a transaction or account.

Ledger

A comprehensive collection of a company's financial accounts where journal entries are summarized and recorded.

Increase Side

Refers to the column in accounting or financial records where increases in the value of an account are recorded.

Nature of Account

This describes the fundamental characteristics and purpose of an account in accounting, such as whether it's an asset, liability, revenue, expense, or equity account.