At the End of Each Year Francis Gives Employees and Equal

question 86

Multiple Choice

At the end of each year Francis gives employees and equal share of the excess revenues after deducting all expenses.What is this an example of?

• A) fringe benefits
• B) cafeteria plans
• C) profit-sharing plans
• D) employee stock ownership plans

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Definitions:

Drag on Profits

Factors or expenses that reduce the overall profitability of a business.

Split-off Point

The stage in a manufacturing process where multiple products are derived from a single raw material or process, making the costs attributable to each product identifiable.

Avoidable Fixed Costs

Costs that can be eliminated if a particular business segment or operation is discontinued.

Joint Products

Two or more products that are generated from a common set of inputs through a single manufacturing process.