A Type of Organization-Wide Incentive Plan That Engages Many or All

question 37

Multiple Choice

A type of organization-wide incentive plan that engages many or all employees in a common effort to achieve a company's productivity objectives by sharing the resulting cost savings among employees and the company is referred to as a

• A)gainsharing plan.
• B)common incentive plan.
• C)productivity plan.
• D)profit-sharing plan.
• E)cost savings plan.

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Definitions:

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.

Prepaid Insurance

An asset account on the balance sheet representing insurance paid in advance that provides coverage over future periods.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services provided on credit.