A Firm That Wants a Gainsharing Program That Is Easy

question 131

Multiple Choice

A firm that wants a gainsharing program that is easy to administer and communicate,and based on an agreed-on level of output should most likely use a(n) ________ plan.

• A) Improshare
• B) Rucker
• C) Scanlon
• D) McGregor

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Definitions:

Direct Materials

Direct materials refer to the raw materials and components that are directly used in the manufacturing of a product, often considered a variable cost.

Period Costs

Expenses that are not directly tied to the production process and are expensed in the period they are incurred, such as selling, general, and administrative costs.

Operating Costs

Expenses related to the operation of a business, excluding costs associated with producing goods directly.

Income Statement

A report detailing a business's earnings, expenditures, and profit during a certain timeframe.