Because the Production Division at Ricklin's Fences Is $10,000 Below

question 86

Multiple Choice

Because the production division at Ricklin's Fences is $10,000 below budget due to process improvements, this year 25 percent of the savings will be returned to the division to spend as desired as a form of

• A) pay for performance.
• B) pay for knowledge.
• C) gainsharing.
• D) profit sharing.
• E) stock options.

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Definitions:

Journal Entry

A record of financial transactions entered in a journal, a fundamental part of the double-entry bookkeeping system.

Carrying Value

Carrying value, or book value, is the net amount at which an asset or liability is valued on a balance sheet, factoring in its original cost minus depreciation, amortization, or impairment costs.

Retirement

the point in time when an individual chooses to leave the workforce permanently.

Gain Or Loss

The positive or negative financial result obtained from an investment, sale of assets, or other transactions, compared to the original cost.