Question

The manager of Gilbert Company used the production cost report to compare budgeted costs to actual costs and then based bonuses on the results. This is an example of using the reports to

Answer 1

Motivate the workforce

Step-by-step explanation:

Performance appraisals based on the performance can be seen as a motivation tool for the work force to achieve more, over and above what has been set as standard or budget.

However this method is not always effective as this may demotivate workforce if the budgets are unrealistic.