Asked by Carley Lambeth on Jul 21, 2024
Verified
A key advantage of incentive plans is that they represent variable costs that are linked to the realization of goals as opposed to a fixed cost such as salary that may be largely unrelated to true performance (i.e., output).
Variable Costs
Costs that vary directly with the level of production or sales volume, such as raw materials or commissions.
True Performance
The actual output or results achieved by an employee, as opposed to perceived or estimated performance.
- Outline the range of incentive programs and assess their impact on motivating staff.
Verified Answer
MH
Mehedi HasanJul 22, 2024
Final Answer :
True
Explanation :
Incentive plans are designed to align employees' actions with company goals by offering rewards based on performance, making them variable costs that directly correlate with the achievement of specific objectives, unlike fixed salaries that do not fluctuate with performance levels.
Learning Objectives
- Outline the range of incentive programs and assess their impact on motivating staff.
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