If an Organization Has a Profit-Sharing Plan in Which Employees

question 78

Multiple Choice

If an organization has a profit-sharing plan in which employees are able to purchase the company's stock at a discount whenever the organization makes huge profits, then this organization follows Fayol's principle of:

• A) centralization.
• B) discipline.
• C) initiative.
• D) esprit de corps.
• E) remuneration of personnel.

Understand the significance of terror management theory and its predictions on human behavior.

Learn about the methods and challenges in psychological testing and assessment.

Acknowledge the global applicability and limitations of the five-factor model of personality.

Understand the concept of 100-percent-reserve banking and its impact on the money supply.

---

Definitions:

Direct Materials Cost

The total cost of raw materials directly involved in the manufacturing of a product.

Underapplied Manufacturing Overhead

A scenario in which the overhead costs assigned to manufacturing are lower than the overhead costs that were actually incurred.

Finished Goods Inventory

The final products that are completed and ready for sale but have not yet been sold to customers.

Overapplied Manufacturing Overhead

A situation where the allocated manufacturing overhead costs for a period exceed the actual overhead costs incurred.