A method for determining a bonus based upon the performance of the unit is a(n):

Multiple Choice

• Activity-based pool.

• Unit-based pool.

• Function-based pool.

• Segment-based pool.

• Firm-based pool.

In service firms, improvement in long term profitability is best measured by all of the following except:

Multiple Choice

• Materials usage.

• Staff utilization.

• Net revenues.

• Collections of customer accounts.

A bonus plan differs from a salary in terms of:

Multiple Choice

• Base, pool, and payment terms.

• Motivation effects.

• Base, timing, and financial statement effect.

• Tax implications.

• Amount and timing.