Government Spending That Changes Automatically Without Action by Congress Is

question 47

Multiple Choice

Government spending that changes automatically without action by Congress is

• A) a noncontrollable expenditure.
• B) national defense.
• C) payments to contractors for routing services performed.
• D) discretionary payments.

Examine incentive plans that encourage employees to adopt an ownership mentality.

Differentiate the functions and outcomes of various incentive plans like the Scanlon plan, gainsharing, and employee stock ownership plans (ESOPs).

Identify strategies for successful implementation of gainsharing plans.

Understand the legal and financial aspects of incentive plans, including ESOPs.

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Definitions:

Direct Fixed Costs

Costs that are directly linked to a specific department or cost center and do not vary with the level of production or sales.

Discounted Cash Flow

A valuation method used to estimate the attractiveness of an investment opportunity by calculating the present value of expected future cash flows using a discount rate.

Cash Payback Period

The duration of time it takes for an investment to generate enough cash flow to recover its initial outlay.

Straight-Line Method

A technique for figuring out an asset's depreciation, apportioning a consistent depreciation value annually throughout the asset's lifespan.