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Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
4) The degree to which pay influences individual and aggregate motivation among employees at
any point in time is referred to as a(n):
A) sorting effect.
B) incentive effect.
C) turnover effect.
D) directional effect.

Answer: B
Difficulty: 1 Easy
Topic: Compensation: Definition, Please
Accessibility: Keyboard Navigation

5) Which of the following is an example of a relational return?


A) A short-term incentive
B) Employment security
C) A long-term incentive
D) Income protection

Answer: B
Difficulty: 2 Medium
Topic: Forms of Pay
Accessibility: Keyboard Navigation

6) Which of the following is given as an increment to base pay in recognition of past work
behavior?
A) Base pay
B) A long-term incentive
C) Merit pay
D) A short-term incentive

Answer: C
Difficulty: 1 Easy
Topic: Forms of Pay
Accessibility: Keyboard Navigation

3
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
7) GreenRain Corp. faces an increase in its employee turnover rate. The CEO calls for a board
meeting with the senior executives to discuss the issue. Who among the following suggests
increasing the relational returns that employees receive to reduce the turnover rate at GreenRain?
A) Tom, who suggests increasing the decision-making authorities given to the employees to make
work more challenging
B) Deena, who suggests providing more work/life balance to the employees by increasing the
number of paid leaves
C) Syed, who suggests increasing the medical insurance coverage offered to the employees
D) Liam, who suggests increasing merit bonuses

Answer: A
Difficulty: 3 Hard
Topic: Forms of Pay
Accessibility: Keyboard Navigation

8) Which form of pay does NOT permanently increase labor costs?


A) Incentives
B) Merit pay
C) Cost-of-living adjustments
D) Base pay

Answer: A
Difficulty: 1 Easy
Topic: Forms of Pay
Accessibility: Keyboard Navigation

9) Which of the following is true of incentives?


A) They reward past behavior to influence future behavior.
B) They are linked to subjective performance measures.
C) They permanently increase labor costs.
D) They are re-earned each pay period.

Answer: D
Difficulty: 2 Medium
Topic: Forms of Pay
Accessibility: Keyboard Navigation

4
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
10) Which of the following companies is taking efforts to improve the work/life balance of its
employees?
A) MH Corp., which increases the number of paid holidays given to its senior employees
B) Kay Corp., which increases the transport allowance for its employees by 10 percent
C) Haywire Corp., which allows its employees to buy company stocks at a reduced price of $30
per share
D) Halo Corp., which increases the variable pay of its employees

Answer: A
Difficulty: 3 Hard
Topic: Forms of Pay
Accessibility: Keyboard Navigation

11) Variable pay may also be called


A) relational returns.
B) pensions.
C) stock options.
D) incentives.

Answer: D
Difficulty: 1 Easy
Topic: Forms of Pay
Accessibility: Keyboard Navigation

12) Which of the following is often the largest component in an executive pay package?
A) Base pay
B) Stock options
C) Merit pay
D) Perks

Answer: B
Difficulty: 1 Easy
Topic: Forms of Pay
Accessibility: Keyboard Navigation

13) Unlike merit increases, merit bonuses are:


A) distributed in every quarter.
B) based on duration of service.
C) paid in the form of a lump sum.
D) included in the base salary.

Answer: C
Difficulty: 2 Medium
Topic: Forms of Pay
Accessibility: Keyboard Navigation

5
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
14) Robert, the CEO of GameTrack Corp., wants to restructure its pay plan without increasing
labor costs in the long run. He is most likely to achieve this, while retaining his top employees, by:
A) increasing base pay and decreasing variable pay.
B) increasing incentive pay and decreasing base pay.
C) hiring more employees and reducing marginal product output requirements.
D) providing across-the-board increases on a monthly basis.

Answer: B
Difficulty: 3 Hard
Topic: Forms of Pay
Accessibility: Keyboard Navigation

15) Incentives do not permanently increase labor costs because:


A) they rely on a subjective rating of performance.
B) they are given based on the past performances of employees.
C) they increase the base wage.
D) they are one-time payments.

Answer: D
Difficulty: 2 Medium
Topic: Forms of Pay
Accessibility: Keyboard Navigation

16) A difference between incentives and merit increases is that incentives:


A) do not increase the base wage, whereas merit increases increase the base wage.
B) cannot be tied to the performance of an individual, whereas merit increases can be tied to the
performance of an individual.
C) rely on a subjective measure of performance, whereas merit increases rely on an objective
measure of performance.
D) are relational returns, whereas merit increases are part of the total compensation.

Answer: A
Difficulty: 2 Medium
Topic: Forms of Pay
Accessibility: Keyboard Navigation

6
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
17) Which of the following is a fundamental objective, and NOT a policy, of the pay model?
A) Fairness
B) Competitiveness
C) Contributions
D) Alignment

Answer: A
Difficulty: 1 Easy
Topic: A Pay Model
Accessibility: Keyboard Navigation

18) Which of the following is a policy, and NOT an objective, of the pay model?
A) Ethics
B) Competitiveness
C) Efficiency
D) Fairness

Answer: B
Difficulty: 1 Easy
Topic: A Pay Model
Accessibility: Keyboard Navigation

19) Which of the following are defined as comparisons among individuals doing the same job for
the same organization?
A) Merit bonuses
B) Merit increases
C) Employee contributions
D) Relational returns

Answer: C
Difficulty: 1 Easy
Topic: A Pay Model
Accessibility: Keyboard Navigation

20) ________ refers to comparisons among jobs or skill levels inside a single organization.
A) External competitiveness
B) Internal alignment
C) Compliance
D) A merit increase

Answer: B
Difficulty: 1 Easy
Topic: A Pay Model
Accessibility: Keyboard Navigation

7
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
21) In the context of pay relationships, which of the following is illegal in the United States?
A) Paying on the basis of the nature of jobs
B) Paying on the basis of pay comparisons with competitors
C) Paying on the basis of one's age
D) Paying on the basis of one's skill level

Answer: C
Difficulty: 1 Easy
Topic: A Pay Model
Accessibility: Keyboard Navigation

22) Managers seek internal alignment within their organization by:


A) matching competitors' pay rates.
B) following Fair Labor Standards Act guidelines.
C) using fair merit increases.
D) paying on the basis of similarities among jobs.

Answer: D
Difficulty: 2 Medium
Topic: A Pay Model
Accessibility: Keyboard Navigation

23) Compensation policy choices that affect the pay level relative to other companies are most
closely associated with the ________ aspect of the pay model.
A) internal alignment
B) external competitiveness
C) employee contribution
D) pay system management

Answer: B
Difficulty: 1 Easy
Topic: A Pay Model
Accessibility: Keyboard Navigation

24) The decisions to implement pay for performance, flat rate pay, and profit sharing are examples
of ________ policy decisions.
A) internal alignment
B) efficiency
C) employee contribution
D) management

Answer: C
Difficulty: 2 Medium
Topic: A Pay Model
Accessibility: Keyboard Navigation

8
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
25) According to the text, which of the following decisions should be made jointly?
A) Internal alignment and management decisions
B) External competitiveness and employee contribution decisions
C) Employee contribution and internal alignment decisions
D) Management and external competitiveness decisions

Answer: B
Difficulty: 1 Easy
Topic: A Pay Model
Accessibility: Keyboard Navigation

26) Which of the following policy decisions directly affects employees' attitudes and work
behaviors?
A) Employee contributions
B) Internal alignment
C) External competitiveness
D) Management

Answer: A
Difficulty: 1 Easy
Topic: A Pay Model
Accessibility: Keyboard Navigation

27) You are an HR manager, and your boss has told you to find the best way to raise job
performance. After some research, you find that ________ have the greatest instrumental value.
A) job responsibilities
B) training and skill development programs
C) goal setting and job enrichment
D) monetary incentives

Answer: D
Difficulty: 2 Medium
Topic: Caveat Emptor—Be an Informed Consumer
Accessibility: Keyboard Navigation

28) In a study, causation can be best established by:


A) considering a single explanation.
B) evaluating the methodologies used.
C) accounting for competing explanations.
D) analyzing the scope of the study.

Answer: C
Difficulty: 2 Medium
Topic: Caveat Emptor—Be an Informed Consumer
Accessibility: Keyboard Navigation

9
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
29) A measure of how changes in one variable are related to changes in another variable is the:
A) standard deviation.
B) analysis of variance.
C) correlation coefficient.
D) mean deviation.

Answer: C
Difficulty: 1 Easy
Topic: Caveat Emptor—Be an Informed Consumer
Accessibility: Keyboard Navigation

30) ________ refers to the process used to make pay decisions.


A) Procedural fairness
B) Relational return
C) Regression analysis
D) Internal alignment

Answer: A
Difficulty: 1 Easy
Topic: A Pay Model
Accessibility: Keyboard Navigation

31) When unemployment increases, the proportion of the population covered by health insurance
decreases.

Answer: TRUE
Difficulty: 1 Easy
Topic: Compensation: Definition, Please
Accessibility: Keyboard Navigation

32) The degree to which pay influences individual and aggregate motivation among employees is
called a sorting effect.

Answer: FALSE
Difficulty: 1 Easy
Topic: Compensation: Definition, Please
Accessibility: Keyboard Navigation

33) Base wage is the overtime pay given to employees who are exempt from regulations of the Fair
Labor Standards Act.

Answer: FALSE
Difficulty: 1 Easy
Topic: Forms of Pay
Accessibility: Keyboard Navigation

10
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
34) Commissions are an example of incentives.

Answer: TRUE
Difficulty: 1 Easy
Topic: Forms of Pay
Accessibility: Keyboard Navigation

35) Most U.S. firms use merit pay increases.

Answer: TRUE
Difficulty: 1 Easy
Topic: Forms of Pay
Accessibility: Keyboard Navigation

36) Base wage reflects both the value of the work and individual employee skills and experience.

Answer: FALSE
Difficulty: 1 Easy
Topic: Forms of Pay
Accessibility: Keyboard Navigation

37) Pension and health benefits are a very large component of total compensation for many large
companies such as American Airlines and GM.

Answer: TRUE
Difficulty: 1 Easy
Topic: Forms of Pay
Accessibility: Keyboard Navigation

38) Unlike for merit adjustments, the potential size of an incentive payment will generally be
known before receiving the payment.

Answer: TRUE
Difficulty: 1 Easy
Topic: Forms of Pay
Accessibility: Keyboard Navigation

39) Procedural fairness suggests that the way a pay decision is made is of less importance to
employees than the results of the decision.

Answer: FALSE
Difficulty: 1 Easy
Topic: A Pay Model
Accessibility: Keyboard Navigation

11
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
40) If the objective is to increase customer satisfaction, then incentive programs and merit pay
might be used to pay for performance.

Answer: TRUE
Difficulty: 1 Easy
Topic: A Pay Model
Accessibility: Keyboard Navigation

41) Objectives guide the design of pay systems and provide standards for evaluating their
effectiveness.

Answer: TRUE
Difficulty: 1 Easy
Topic: A Pay Model
Accessibility: Keyboard Navigation

42) Even if federal compensation laws change, it is unnecessary to change pay systems to ensure
continued compliance.

Answer: FALSE
Difficulty: 1 Easy
Topic: A Pay Model
Accessibility: Keyboard Navigation

43) Internal alignment pertains to the pay rates both for employees doing equal work and for those
doing dissimilar work.

Answer: TRUE
Difficulty: 1 Easy
Topic: A Pay Model
Accessibility: Keyboard Navigation

44) Since HR research contains information useful to managers, most managers read research in
HR management and compensation journals.

Answer: FALSE
Difficulty: 1 Easy
Topic: Caveat Emptor—Be an Informed Consumer
Accessibility: Keyboard Navigation

12
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
45) Management and HR research has conclusively shown that goal setting and job enrichment
produce the largest and most reliable increases in job performance.

Answer: FALSE
Difficulty: 1 Easy
Topic: Caveat Emptor—Be an Informed Consumer
Accessibility: Keyboard Navigation

46) Fairness is affected through employees' comparisons of their pay to the pay of others in the
organization.

Answer: TRUE
Difficulty: 1 Easy
Topic: A Pay Model
Accessibility: Keyboard Navigation

47) Consultant surveys are often presented as studies that reveal cause and effect.

Answer: TRUE
Difficulty: 1 Easy
Topic: Caveat Emptor—Be an Informed Consumer
Accessibility: Keyboard Navigation

48) In Japan, the traditional characters for the word "compensation" are based on the symbols for
logs and water, suggesting that compensation provides the necessities in life.

Answer: FALSE
Difficulty: 1 Easy
Topic: Compensation: Definition, Please
Accessibility: Keyboard Navigation

49) The relationship between variables is most often addressed through the use of statistical
analysis.

Answer: TRUE
Difficulty: 1 Easy
Topic: Caveat Emptor—Be an Informed Consumer
Accessibility: Keyboard Navigation

13
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
50) The R2, which is an output from a regression analysis, is different from correlation in that it
tells us what percentage of the variation is accounted for by the variables we are using to predict or
explain.

Answer: FALSE
Difficulty: 1 Easy
Topic: Caveat Emptor—Be an Informed Consumer
Accessibility: Keyboard Navigation

51) Describe the perspective of stockholders on compensation.

Answer: Stockholders are interested in how employees are paid. Some believe that using stock to
pay employees creates a sense of ownership that improves performance and increases stockholder
wealth. However, others argue that granting employees too much ownership dilutes stockholder
wealth.

Stockholders have a particular interest in executive pay. The interests of executives are aligned
with those of shareholders who hope that company performance will be higher.
Difficulty: 2 Medium
Topic: Compensation: Definition, Please
Accessibility: Keyboard Navigation

52) What are the different ways in which pay can influence employee motivation and behavior?

Answer: Pay can influence employee motivation and behavior in two ways:

• Pay can affect the motivational intensity, direction, and persistence of current employees. The
degree to which pay influences individual and aggregate motivation among the employees at any
point in time is referred to as an incentive effect.
• Pay can also have an indirect, but important, influence via a sorting effect. Different types of
pay strategies cause different types of people to apply to and stay with an organization.
Difficulty: 2 Medium
Topic: Compensation: Definition, Please
Accessibility: Keyboard Navigation

14
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
53) Describe the various returns received from work.

Answer: Returns are categorized into two types: relational returns and total compensation
returns.

• Relational returns are psychological and include learning opportunities, status, challenging
work, and other psychological aspects.
• Total compensation returns are transactional and include the following:
• Pay received directly as cash through base pay, merit, incentives, cost-of-living adjustments,
etc.
• Pay received indirectly as benefits through pensions, medical insurance, programs to help
balance work and life demands, brightly colored uniforms, etc.
Difficulty: 2 Medium
Topic: Forms of Pay
Accessibility: Keyboard Navigation

54) List the basic elements of the pay model.

Answer: The pay model contains three basic building blocks:

• The compensation objectives


• The policies that form the foundation of the compensation system
• The techniques that make up the compensation system
Difficulty: 1 Easy
Topic: A Pay Model
Accessibility: Keyboard Navigation

55) Explain the basic compensation objectives of pay systems.

Answer: The basic objectives include efficiency, fairness, ethics, and compliance with laws and
regulations.

• Efficiency can be stated more specifically: (1) improving performance, increasing quality,
delighting customers and stockholders, and (2) controlling labor costs.
• The fairness objective calls for fair treatment for all employees by recognizing both employee
contributions (e.g., higher pay for greater performance, experience, or training) and employee
needs (e.g., a fair wage as well as fair procedures).
• Ethics means the organization cares about how its results are achieved. Because it is so
important, it is inevitable that managing pay sometimes creates ethical dilemmas.
• Compliance as a pay objective means conforming to federal and state compensation laws and
regulations. If laws change, pay systems may need to change, too, to ensure continued compliance.
As companies go global, they must comply with the laws of all the countries in which they operate.
Difficulty: 2 Medium
Topic: A Pay Model
Accessibility: Keyboard Navigation

15
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written consent of McGraw-Hill Education.
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No. 20. A PIGEON.

The breast and wings of a pigeon may be raised in the same way
as those of a partridge (see No. 18); or the bird may be carved
entirely through in the line a b. For the second course, pigeons
should be dished upon young delicate water-cresses.
No. 21. A SNIPE.

This bird is trussed, roasted, and served exactly like a woodcock.


It is not of a size to require any carving, beyond dividing in two, if at
all.
No. 22. A GOOSE.

The skin below the breast, called the apron, must first be cut off in
a circular direction as indicated by the letters a a a, when a glass of
port-wine or of claret, ready mixed with a teaspoonful of mustard,
may be poured into the body or not, at choice. Some of the stuffing
should then be drawn out with a spoon, and the neck of the goose,
which ought to be to the right and not to the left hand, as here, being
turned a little towards the carver, the flesh of the breast should be
sliced in the lines from b b b to c c c, on either side of the bone. The
wings may then be taken off like those of any other bird, and then
the legs, which, in the engraving No. 22, are trussed so completely
under the apron as to render their outline scarcely distinguishable.
Graceful and well-skilled carvers never turn birds on their sides to
remove any of the joints, but those of a goose, unless it be very
young, are sometimes severed from it with difficulty; and the
common directions for assisting the process in that case are, to turn
it on its side, and with the fork to press down the small end of the
leg; then to pass the knife quite under it from the top down to the
joint, when the leg should be turned back from the bird with the fork,
while the thigh-bone is loosened from its socket with the knife. The
end of the pinion marked d is then held down in the same manner, to
facilitate the separation of the bones at e, from which point the knife
is drawn under the wing, which it takes off. The merrythought of a
goose is small, and, to remove it the knife must first be turned a little
from the neck, after the flesh has been cut through, and then passed
under it, back towards the neck. For the remainder of the carving,
the directions for that of a fowl will suffice.
DUCKS.

Tame ducks are served with the feet (which are liked by many
people) left upon them and trussed up over the backs. If large they
may be carved like a goose, but when very young may be disjointed
like chickens; the only material difference between them being the
position of the thigh-joints, which lie much further towards the back-
bone than those of a fowl.
No. 23. A WILD DUCK.

The breasts of wild-fowl are the only parts of them held in much
estimation, and these are carved in slices from the legs to the neck
The legs and pinions may, if required, be taken off exactly like those
of a pheasant.
No. 24. A TURKEY.

The carving of a turkey commences by taking slices off the breast,


from the letters b b quite through the forcemeat, which lies under the
letter a, to c c: the greater part of the flesh of the wings is thus taken
off likewise. When the bird is boned and filled with sausage or other
forcemeat, the breast is carved entirely across in the direction d e,
nearly, or quite down to the back, which it is better not altogether to
divide at first, as the appearance of the turkey is not then so good.
When it has been prepared in the ordinary manner, after the breast
has been disposed of, the pinions and the legs may be taken off, the
first in the line from f to g, and the latter by passing the knife under it
at h, and bringing it down to the joint at i j, where it must be taken off
in the line shown. The whole of the joints being in form exactly like
those of a fowl, may be separated in the same manner. The gizzard
is more commonly eaten broiled after having been scored, and very
highly seasoned with cayenne and with a sufficiency of salt, than in
any other way. A slice or portion of the liver should be served with
the white flesh of the turkey as far as possible.
No. 25. A HARE.

A hare should be placed with its head to the left of the carver,
therefore the engraving No. 25 shows it turned in the wrong
direction. It is so very great an improvement to take out the back-
bone before a hare is roasted, that we would recommend it to be
done wherever it can be so without difficulty: it may then be carved in
the line a b quite through, or only partially so at choice. When the
bone remains in, slices may be taken down the whole length of the
back from c c to d d; the legs, which, next to the back, are
considered the best eating, may then be taken off in the direction e f
and the flesh divided from or served upon them, after the small
bones have been parted from the thighs. The shoulders, which are
not generally much esteemed, though sometimes liked by
sportsmen, may next be taken off by passing the knife at the letters g
h between the joint and the body. When a hare is young, the back is
sometimes divided at the joints into three or four parts, after being
freed from the ribs and under-skin.
No. 26. A FRICANDEAU OF VEAL.

This is usually stewed, or rather braised sufficiently tender to be


divided with a spoon, and requires no carving; but the fat (or
underpart of the fillet) attached to it, marked a a a, which is
sometimes, but not invariably served with it now, may be carved in
even slices. The larding differs somewhat from that which we have
described, but the mode shown here allows the fricandeau to be
glazed with more facility.
The engraving of the entrée No. 26 is intended merely to show the
manner of dishing the cutlets. They may be of mutton, lamb, veal, or
pork; and the centre may be filled with the sauce or stewed,
vegetable appropriate to either; as soubise, purée of asparagus, of
mushrooms, or of tomatas; or green peas à la Française, stewed
cucumbers, or aught else that is suited to the kind of meat which is
served.
Plate 1.

1
COD’S HEAD.

2
TURBOT.
3
MIDDLE OF SALMON.

H. Adlard, sc.
Plate 2.

4
SADDLE OF MUTTON.

5
HAUNCH OF VENISON.
6
SIRLOIN OF BEEF.

H. Adlard, sc.
Plate 3.

7
LEG OF MUTTON.

8
QUARTER OF LAMB.
9
SHOULDER OF MUTTON.

H. Adlard sc.
Plate 4.

10
SUCKING PIG.

11
BREAST OF VEAL.

H. Adlard, sc.
Plate 5.

12
OX-TONGUE.

13
CALF’S HEAD.
14
HAM.

H. Adlard, sc.
Plate 6.

15
PHEASANT.

18
PARTRIDGE.

19
WOODCOCK.
16
BOILED FOWL.

20
PIGEON.

21
SNIPE.
17
ROAST FOWL.

H. Adlard, sc.

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