For Performance Evaluation Purposes, the Lump-Sum Amount of Fixed Service

question 5

True/False

For performance evaluation purposes, the lump-sum amount of fixed service department costs charged to an operating department should usually be based on either the operating department's peak-period or long-run average needs.

---

Definitions:

Instinct

Instinct refers to the innate, typically fixed patterns of behavior in animals and humans that are responded to specific stimuli, driven by evolutionary pressures.

Incentives

External rewards or punishments that motivate behavior or inspire action.

Stimuli

External or internal factors that elicit a physiological or psychological response in an organism.

Intrinsic Motivation

The drive to engage in activities for their own sake, because they are interesting or enjoyable, without seeking external rewards.