Which of the Following Statements Is True Regarding Gainsharing

question 8

Multiple Choice

Which of the following statements is true regarding gainsharing?

• A)Gainsharing focuses on productivity gains rather than profits.
• B)Gainsharing involves paying employees based on the number of new skills acquired by them in a specific time period.
• C)Gainsharing does not distribute profits, only gains in profits.
• D)Employees working under gainsharing plans have a greater feeling of psychological ownership.
• E)Gain sharing encourages social loafing.

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Definitions:

Direct Labor

The labor costs directly attributable to the production of goods or services, typically wages for workers who manufacture a product or perform a service.

Lean Manufacturing

A systematic method for waste minimization within a manufacturing system without sacrificing productivity.

Business Philosophy

The underlying principles and values that guide the operations, decisions, and overall direction of a company.

Nonmanufacturing Processes

Operations or activities that are not involved in the physical creation of goods.