Share Option Plans

question 59

Multiple Choice

Share option plans

• A)directly award bonuses to employees based on cost savings and increased labour productivity.
• B)are illegal in Canada.
• C)tend to weaken employee commitment to the organization.
• D)give employees the right to purchase company shares at a future date at a predetermined price.
• E)give employees the right to purchase company shares at a future date at a predetermined price and tend to weaken employee commitment to the organization.

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Definitions:

Traditional Costing System

A costing method that assigns manufacturing overhead costs to products based on volume metrics such as machine hours or labour hours.

Direct Labor-Hours

The entirety of hours committed by personnel directly involved in the process of production.

Activity-Based Costing

An accounting method that assigns costs to products and services based on the activities and resources that go into producing them, providing more accurate product costing.

Manufacturing Overhead

Costs involved in the manufacturing process that cannot be directly linked to the production of a specific product, like maintenance and factory supervision.