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In a Short Essay, Explain How a "Pay-For-Performance System" and "Lifetime

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Essay

In a short essay, explain how a "pay-for-performance system" and "lifetime employment" complicate company activities. Explain how these two cross-cultural differences reflect Hofstede's long-term versus short-term orientation.


Definitions:

Service Cost

An expense recognized in the income statement of an employer for the cost of future pension benefits earned by employees during the current period.

Accrual-Basis Concepts

Accrual-basis concepts in accounting involve recording revenues when they are earned and expenses when they are incurred, regardless of when cash is received or paid.

Projected Benefit Obligation

The present value of all benefits attributed by the pension benefit formula to employee service rendered up to that date.

Defined Benefit Plan

A Defined Benefit Plan is a type of pension plan where the benefits that the employee will receive upon retirement are defined based on a formula involving salary history and years of service.

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