Steve Kerr's Proposed Phenomenon,"the Folly of Rewarding a While Hoping

question 137

Multiple Choice

Steve Kerr's proposed phenomenon,"the folly of rewarding A while hoping for B" is demonstrated by

• A)a manager failing to acknowledge an employee who stayed after hours for one week to complete a report for an ill coworker.
• B)a manager who fears his top sales person will leave if he criticizes him for being 15 minutes late every day.
• C)a manager who promotes a subordinate known for his propensity to argue with his coworkers so that subordinate can be transferred to another department where an individual just retired.
• D)rewarding a manager who orders the release of a shipment of manufactured parts with known defects to meet a deadline in spite of the company's highly advertised quality commitment.

Understand the concept of variances in managerial accounting, including materials price variance and materials quantity variance.

Analyze the impact of purchasing and production departments on variances.

Discuss the ethical considerations in setting standard costs and handling variances.

Distinguish between different types of standards (ideal versus normal) in cost accounting.