BigCo Is Implementing a System Where Any Savings Resulting from an Increase

question 45

Multiple Choice

BigCo is implementing a system where any savings resulting from an increase in output in fewer than expected hours are shared between the organization and the employee group on the basis of a preestablished formula.This is an example of a(n) ___________.

• A)Scanlon Plan
• B)Rucker Plan
• C)Improshare
• D)Profit sharing

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Definitions:

Potato Chips

A thin slice of potato that has been deep fried or baked until crunchy, often used as a snack food.

Pretzels

Twisted bread snacks, usually salted, and can be soft or hard, originating from Europe but popular worldwide.

Efficient Allocation

The process whereby resources are distributed in the most effective manner, maximizing the net benefits received by society.

Economic Profits

Economic profits are the total revenues of a firm minus the opportunity costs of all inputs, reflecting the surplus generated beyond the normal rate of return.