Which of the Following Is an Example of a Disincentive

question 119

Multiple Choice

Which of the following is an example of a disincentive?

• A) Law enforcement creates a "Mug Shots" section online in order to discourage potential law breakers.
• B) You offer workers a bonus if they sell 100 widgets per month.
• C) A local gym offers a weight loss competition and the winner earns a free trip to Bermuda.
• D) Your professor offers to edit your paper before it's graded if you turn it in early.

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Definitions:

Fixed Manufacturing Overhead

Costs associated with production that remain constant, regardless of the scale of production output, including salaries of managerial staff and depreciation of factory equipment.

Fixed Overhead Applied

The portion of the estimated fixed overhead costs charged to production over a specific period based on a predetermined rate.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to products, based on a planned level of activity or volume.

Direct Labor-Hours

The total hours of labor directly involved in manufacturing a product or providing a service.