For Short Term Incentives, What Does the Term Fund Size

question 11

Multiple Choice

For short term incentives, what does the term fund size refer to?

• A) The amount each employee will receive from productivity gains
• B) The total amount of bonus money that will be available to be paid out
• C) The percentage of the company's net income to be paid out
• D) The incentive bonus amount when targets are exceeded
• E) The bonus money available for each level of management

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Definitions:

MTS (Make-to-Stock)

A production strategy where companies manufacture products in anticipation of demand and keep an inventory to quickly meet that demand.

Production Managers

Professionals responsible for overseeing the manufacturing processes, ensuring that production runs smoothly, efficiently, and meets quality standards.

Workcenter

A specific physical location where tasks are performed, often used in manufacturing and project planning.

Manufacturing Cell

An arrangement of machinery and workers in which the production process is broken down into simpler steps, and all necessary equipment and staff are located close to each other to increase efficiency.