Question

Which of the following would be a reason why managers would NOT provide good service?

Select one:

a. They may have low ability.

b. They may not prefer to work hard.

c. They may prefer to spend company resources on perquisites.

d. All of these are reasons.

Which of the following managerial rewards is NOT a short-term reward?

Select one:

a. stock ownership

b. cash bonuses

c. stock options

d. both a and b

Volume variances examine differences between

Select one:

a. the static budget and actual costs.

b. the flexible budget and static budget.

c. the static budget and the rolling budget.

d. none of these.

Answer 1

1.

Managers would NOT provide good service because they may have low ability, they may not prefer to work hard, and they may prefer to spend company resources on perquisites.

Therefore, all of the given reasons are correct. The answer is d. All of these are reasons

2.

Stock ownership is not a managerial reward. Cash bonuses are short-term rewards given to managers for achieving short-term targets.

Stock options is NOT a short-term reward because these materialize over a long period of two to three years.

Therefore, the correct answer is c. stock options

3.

Volume variances examine differences between the flexible budget and static budget.

Therefore, the correct answer is b. the flexible budget and static budget.