Rewarding employees in one production department for meeting or exceeding standard cost benchmarks can create new sets of problems for organizations. Which of the following is not one of them?
A) An unfavourable 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

Rewarding employees for meeting or exceeding standard cost benchmarks typically motivates them rather than demotivates. The other options (A, B, D) are potential problems that can arise from focusing solely on cost benchmarks, such as quality issues or inefficiencies in other departments.

Rewarding Employees in One Production Department for Meeting or Exceeding