What Is the Fundamental Difference Between Profit-Sharing and Gainsharing

question 21

Multiple Choice

What is the fundamental difference between profit-sharing and gainsharing?

• A)Profit-sharing rewards employees based on the profit the company earns,while gainsharing rewards employees based on productivity improvements.
• B)Profit-sharing has been shown to be more motivating for employees than gainsharing.
• C)Profit-sharing allows more specific measurement of improvements than gainsharing.
• D)Profit-sharing focuses on group rewards,while gainsharing focuses on individual rewards.
• E)Profit-sharing is used mostly by large companies,while gainsharing is used mostly by small companies.

Acquire knowledge on how specific activities relate to the overall process of producing a product and managing overhead costs.

Understand the basic concept and purpose of activity-based costing.

Identify how activity rates are computed and applied in activity-based costing.

Recognize the impact of switching from traditional costing to activity-based costing on product costs.

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Definitions:

Continental Drift

A theory that explains the gradual movement of continents across the earth's surface through geological time.

Glacial Deposits

Materials left behind by glaciers as they advance and retreat, including rocks, sediments, and debris.

Fossils

The preserved remains or impressions of organisms from the past, typically found in sedimentary rock.

Scratch Marks

Linear erosional features on rock surfaces, often caused by the movement of glaciers or other sediment-laden flows.