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).

Question

Quizplus · Accepted Answer

Incentive plans are typically performance-based, meaning they reward employees based on achieving specific objectives or reaching certain metrics. This makes them variable costs, as they are tied to actual performance rather than being a set amount that employees receive regardless of their individual contribution or output. Therefore, the statement is true.

A Key Advantage of Incentive Plans Is That They Represent