Gainsharing Can Significantly Improve Productivity,but at the Same Time Decrease

question 127

True/False

Gainsharing can significantly improve productivity,but at the same time decrease production quality,as employees strive to produce more at the expense of quality.

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Definitions:

Average costing

Average costing is an inventory costing method where all costs of inventory are averaged over the goods available for sale, providing a medium cost per unit.

Rising prices

An economic phenomenon where the general level of prices for goods and services increases over a period.

Income taxes

Taxes levied by governments on individuals or entities' income.

FIFO

Stands for First In, First Out, an inventory valuation method where goods purchased or produced first are sold or used first.