Which of the Following Is True About Gainsharing Plans

question 70

Multiple Choice

Which of the following is true about gainsharing plans?

• A) The adoption of gainsharing plans is often followed by the suspension of productivity-related bonuses for employees.
• B) Gainsharing plans tie periodic bonuses to labor productivity improvements.
• C) The adoption of gainsharing plans is associated with greater ability and inclination of a firm to design frequent restructuring programs.
• D) The employer is the actual and sole beneficiary of gainsharing plans.

---

Definitions:

Critical Event

An occurrence that significantly alters the current course of a business or project, potentially impacting financial outcomes or operational capabilities.

Measurability Criteria

Guidelines to determine whether an item can be quantified in monetary terms and thus be included in the financial statements.

Revenue

The total income generated from normal business operations, including the sale of goods and services before any expenses are deducted.

Extended Time

Additional time allotted beyond the original schedule or deadline for completing a task or project.