Exam 4: Incentive Pay

Which of the following is true about the level of risk involved with incentive pay?

Which of the following is NOT a financial measure?

Profit sharing plans and employee stock option plans are incentives on what level?

Briefly describe the three categories of incentive pay plans and give an example of each.

________ profit sharing plans place cash awards in trust accounts for employees and are set aside on employees' behalf as a source of retirement income.

In general,which of the following is an incentive plan design consideration?

This type of individual incentive plan rewards employees who recruit new customers or new employees.

Over the past 10 years,Lincoln's profit-sharing payments have been substantial.Maria's annual salary was $40,000 last year,and she earned a profit-sharing payment of $10,000.Maria's profit-sharing award represents approximately what percentage of her annual salary?

The ________ effect refers to a worker's willingness to work diligently to produce more quality output rather than simply attending work without putting in the effort.

These profit sharing plans award cash to employees on a quarterly or annual basis as part of their regular compensation.

Companies can control costs by replacing annual merit or seniority increases or fixed salaries with which type of plans?

The sales value of production (SVOP)is the sum of sales ________ plus the value of goods in inventory.

Gunther Rohn was rewarded for making a suggestion that saved Ewe and Eye Electronics thousands of dollars.Which type of incentive compensation approach might have worked best?

Companies in such ________ industries as retail sales could benefit by including an incentive component in the core compensation programs they offer to employees.

With which profit sharing formula does the profit sharing pool become funded only after profits exceed a predetermined level,but fall below some established maximum level?

Which of the following teams consists of a group of people who are assembled to complete a one-time assignment?

The general rule of thumb is that short-term company goals last less than how long?

Under which three conditions are individual incentive plans most appropriate?

To have better safety records,the XYZ Company gives monetary incentive awards to its workers for lower accident rates due to improper use of heavy equipment.Which of the following incentive plans describes this example?

This formula for determining the amount available for profit sharing uses a specific percentage of annual profits contingent upon the successful attainment of a specified profit goal.