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3 years ago

Identify and explain the components of management compensation and the tradeoffs that compensation designers make.

Business

1 answer:

Elena L [17]3 years ago

6 0

Incorrect/Incomplete question: Complete question read;

Which of the following statements correctly describes management compensation options?

A) Managers do not receive fixed salaries; instead their compensation is based on bonuses and incentives.

B) Perks (perquisites) were eliminated as part of the Sarbanes-Oxley Act.

C) Bonuses are typically awarded for meeting or achieving specific goals.

D) Stock options and awards are part of fixed salary compensation.

Answer:

C) Bonuses are typically awarded for meeting or achieving specific goals.

Explanation:

All the options above with the exception of option C rightly describes management compensation plans. Remember,  the term compensation includes both cash and non-cash payments an employee may receive for performing their duties well.

Hence, managers may award certain bonuses (eg 5% salary bonuses, etc) to their employees for working diligently to meet specific goals (like meeting a sales target, new customer acquisition targets, etc).

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Presented below is net asset information related to the Marin Division of Santana, Inc.MARIN DIVISIONNET ASSETSAS OF DECEMBER 31

BartSMP [9]

Answer:

The impairment loss of $161m is jounalized below:

Account Debit Credit

$m $ m

Loss on impairment 161.00

Goodwill 161.00

Being impairment recorded

The impairment test on Marin division of Santana that gave rise to impairment loss of $161 m found in the attached spreadsheet

Explanation:

Please note excel formula used in each cell.

Download xlsx

8 0

3 years ago

During March, the production department of a process operations system completed and transferred to finished goods 25,000 units

amid [387]

Answer:

140,000 units and 130,250 units

Explanation:

The computations are shown below:

For Material cost:

= Transferred units × percentage of completion + ending work in process inventory units × percentage of completion

= 110,000 units × 100% + 30,000 units × 100%

= 110,000 units + 30,000 units

= 140,000 units

For Conversion cost:

= Beginning work in progress units × remaining completion + Transferred units × percentage of completion + ending work in process inventory units × percentage of completion

= 25,000 units × 45% + 110,000 units × 100% + 30,000 units × 30%

= 11,250 units + 110,000 units + 9,000 units

= 130,250 units

The remaining percentage would be

= 100% - 55%

= 45%

4 0

3 years ago

Tom, Mary and Jill have apartments in the same building. A security system for their building costs $750. Tom is willing to pay

SSSSS [86.1K]

Answer: The efficient outcome is to have the security system installed. After the meeting the security system will be installed, which illustrates the free rider problem.

Free rider is the burden on resource which is been shared, the problem is created by its usage or over-exploitation by individual who aren't paying their fair share.

∴ Here Tom is a free rider. i.e. He is willing to pay $100 where he should've paid $250.

3 0

3 years ago

The criteria that parties to a contract must be in agreement is also known as

irga5000 [103]

Answer:

C: Mutual Assent.

Explanation:

Mutual assent is a legal term which represents an agreement by both parties to a contract. When two parties to a contract both have an understanding of the parameters, terms and conditions surrounding a contract, it ultimately implies that they are in agreement; this is generally referred to as mutual assent.

Hence, the criteria that parties to a contract must be in agreement is also known as mutual assent.

In a nutshell, mutual assent connotes agreement, acceptance and consent to a contract by both parties.

7 0

3 years ago

The difference between zero profit and zero economic profit is that:

Marianna [84]

Answer:

The correct answer is letter "A": economists include opportunity cost in zero economic profit, while accountants do not include opportunity cost in zero profit.

Explanation:

Normal profit is an economic term that means zero economic profits. To an economist, this is normal since total revenue equals total cost which includes both explicit and implicit costs. It differs from the accounting profit or zero profits since the latter does not take into consideration implicit cost.

8 0

3 years ago