Which of the Following Is an Example of the Sorting

question 97

Multiple Choice

Which of the following is an example of the sorting effect?

• A)A mid-year merit bonus encourages Lavar to keep improving his productivity at Star Industries.
• B)Bevlink's full match for employee retirement plan contributions encourages Tina to apply for a job there.
• C)Two years without a wage increase for employees at Fractal Castings has led to a decrease in product quality.
• D)Implementation of profit sharing at RedCube Robotics inspires Zack's team to identify potential supply chain savings.
• E)Freezing of year-end bonuses at Harvest Organics leads employees to question the organization's values.

---

Definitions:

Variable Costing

An accounting method that includes only variable manufacturing costs - direct materials, direct labor, and variable manufacturing overheads - in product costs.

Variable Costs

Costs that change in proportion to the level of production or business activity.

Full Costs

This refers to the comprehensive total amount that includes all relevant costs of production, including direct, indirect, fixed, and variable costs.