Heter and Co

question 43

Multiple Choice

Heter and Co., a multinational firm, invited groups of employees to suggest strategies for reducing cost. The firm implemented one of the strategies suggested by a group and made huge gains. If the firm uses the Scanlon plan to distribute the gains, the firm is most likely to:

• A) distribute the majority of the total gain to its executives.
• B) distribute about one-third of the total cost savings among its employees.
• C) distribute the cost savings to the entire organization.
• D) distribute the total gain equally and exclusively among all the members of the group that came up with the strategy.

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Definitions:

GAAP

Generally Accepted Accounting Principles are a set of rules and standards for financial accounting that companies in the U.S. must adhere to.

Managerial

Pertaining to the activities, responsibilities, and skills of managers in an organization, focusing on effective planning, organizing, leading, and controlling.

Financial Accounting

The field of accounting focused on the summary, analysis, and reporting of financial transactions pertaining to a business.

Qualitative Data

Non-numerical information that describes characteristics, attributes, or properties of objects, people, or events.