What Is the Philosophy Behind the Scanlon Plan

question 73

Multiple Choice

What is the philosophy behind the Scanlon Plan?

• A) Rewards are shared with employees based on improved profits.
• B) Employees should offer ideas and suggestions to improve productivity and, in turn, be rewarded for their constructive efforts.
• C) Organizational profits should improve through sales efforts.
• D) Managers and employees should establish quality and quantity goals for optimum organizational performance.

---

Definitions:

Equivalent Units

A concept in cost accounting used to express the amount of work done by incomplete units in terms of fully completed units.

Average Cost Method

An inventory costing method that determines the cost of goods sold and ending inventory based on the average cost of all similar items available during the period.

Milling Blanks

The process of machining raw materials into a preliminary shape before further processing.

Sheet Steel

Thin, flat steel that is produced in sheets, commonly used in automotive manufacturing, construction, and appliance manufacturing.