Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 23 - Performance Measurement, Compensation, and Multinational Considerations - Assignment Material - Questions - Page 899: 23-13

Answer

When employees are required to perform multiple tasks as part of their jobs, incentive problems can emerge, particularly when one task is easy to monitor and measure, while another is more challenging to assess. The issue arises when employers desire employees to allocate their time and effort wisely across various tasks. However, if employees are rewarded primarily based on the easily measurable task, they may concentrate their efforts on that specific task, neglecting the others. This can result in an imbalance in task prioritization and potential inefficiencies.

Work Step by Step

No steps.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.