Gainsharing Plans Involve Putting Some Portion of an Employee's Weekly

question 5

True/False

Gainsharing plans involve putting some portion of an employee's weekly pay at risk for the opportunity to earn incentives if the employee meets or exceeds his or her goals.

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Definitions:

Spending Variance

The difference between the budgeted or standard cost of something and its actual cost.

Supplies Cost

The total expense incurred from acquiring supplies necessary for the operation of a business, including office, cleaning, and manufacturing supplies.

Activity Variance

The difference between the budgeted amount of an activity and its actual cost or output.

Cost Formula

An equation used to calculate the total cost of producing goods or services by accounting for both fixed and variable costs.