Contingent Rewards Represent

question 98

Multiple Choice

Contingent rewards represent:

• A) abdicating responsibilities and avoiding decisions.
• B) intervening only if standards not met.
• C) watching for deviations from rules and standards and taking corrective action.
• D) the exchange of rewards in exchange for mutually agreed-upon goal accomplishment.
• E) focusing on organizational performance.

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Definitions:

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance, which are incurred regardless of the amount of goods or services produced.

Economic Profit

Profit that accounts for both explicit costs and opportunity costs.

Economic Profit

The financial gain made in a transaction after subtracting both the explicit and implicit costs.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.