1. Define productivity.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Please help me answer this, as much as possible own word
![1. Define productivity.
2. Why is it important for a firm that follows a strategy of being the cost leader to
improve productivity?
3. What are the criteria often used to assess productivity? Give their advantages and
disadvantages.
4. Distinguish between operational productivity and financial productivity.
5. Distinguish between partial productivity and total productivity.
6. Why is operational productivity measures preferred over financial
productivity measures by manufacturing personnel?
7. Give some important measurements for assessing marketing effectiveness.
8. Distinguish between a sales price variance and a sales volume variance.
9. Distinguish between a market size variance and a market share variance.
10. What are the relationships between a market size variance, a market share
variance, a sales quantity variance, and a sales volume variance?
11. What is incentive compensation? What type of organization is best suited to
incentive compensation plans?
12. What are the four guidelines for effective incentive compensation systems? Briefly
discuss each.
13. There are four broad approaches to distributing the proceeds of a bonus pool in a
profit-sharing plan:
1. Each person's share is based on her salary.
2. Each person receives an equal share.
3. Each person's share is based on his position in the organization
(larger payments to people at higher levels).
4. Each person's share is based on individual performance.
Required:
a. For each of these alternatives, give 2 reasons to support that alternative.
b. For each of these alternatives, give 2 reasons against that alternative.
14. Describe each of the following:
a. cash bonus
b. profit sharing
c. gain sharing
d. stock option plan
When should an organization use of them?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2054fe6e-6742-4f99-b33d-1e50e1bec08d%2Fab01771e-a0ea-4b02-9b49-75edaf570fa6%2Fs85262z_processed.png&w=3840&q=75)
Transcribed Image Text:1. Define productivity.
2. Why is it important for a firm that follows a strategy of being the cost leader to
improve productivity?
3. What are the criteria often used to assess productivity? Give their advantages and
disadvantages.
4. Distinguish between operational productivity and financial productivity.
5. Distinguish between partial productivity and total productivity.
6. Why is operational productivity measures preferred over financial
productivity measures by manufacturing personnel?
7. Give some important measurements for assessing marketing effectiveness.
8. Distinguish between a sales price variance and a sales volume variance.
9. Distinguish between a market size variance and a market share variance.
10. What are the relationships between a market size variance, a market share
variance, a sales quantity variance, and a sales volume variance?
11. What is incentive compensation? What type of organization is best suited to
incentive compensation plans?
12. What are the four guidelines for effective incentive compensation systems? Briefly
discuss each.
13. There are four broad approaches to distributing the proceeds of a bonus pool in a
profit-sharing plan:
1. Each person's share is based on her salary.
2. Each person receives an equal share.
3. Each person's share is based on his position in the organization
(larger payments to people at higher levels).
4. Each person's share is based on individual performance.
Required:
a. For each of these alternatives, give 2 reasons to support that alternative.
b. For each of these alternatives, give 2 reasons against that alternative.
14. Describe each of the following:
a. cash bonus
b. profit sharing
c. gain sharing
d. stock option plan
When should an organization use of them?
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