Rewarding employees in one production department for meeting or exceeding standard cost benchmarks can create new sets of problems for organisations. Which of the following is not one of them?
A) An unfavorable efficiency variance because of rework needed on work from another department
B) Variances in another production department
C) Unmotivated employees in that production department
D) Poor quality finished goods

Question

Quizplus · Accepted Answer

Unmotivated employees in that production department is not a problem caused by rewarding employees for meeting or exceeding cost benchmarks; rather, it is the opposite, as rewards are intended to motivate employees.

Rewarding Employees in One Production Department for Meeting or Exceeding