The difference between the value that an activity generates and the cost of the activity is called the ________

The administrative purpose of a performance management system refers to:

A. linking employees' behaviors with the organization's goals. B. developing employees' knowledge and skills. C. linking performance measurements to the organization's goals and communicating the goals and feedback about performance to employees. D. measuring each employee's performance to identify areas where expectations are not being met. E. the ways in which organizations use the system to provide information for day-to-day decisions about salary, benefits, and recognition programs.

A company contemplating the acceptance of a special order has the following unit cost behavior, based on 10,000 units:

Direct materials $ 4 Direct labor 10 Variable overhead 8 Fixed overhead 6 A foreign company wants to purchase 2,000 units at a special unit price of $25. The normal price per unit is $40. In addition, a special stamping machine will have to be purchased for $4,000 in order to stamp the foreign company's name on the product. The incremental income (loss) from accepting the order is a) $(6,000). b) $(2,000). c) $6,000. d) $2,000.