Adjustments for Accruals Are Needed to Record a Revenue That

question 40

True/False

Adjustments for accruals are needed to record a revenue that has been earned or an expense that has been incurred but not recorded.

---

Definitions:

Gain Sharing

A performance-based compensation strategy that rewards employees for contributing to their company's success through increased efficiency or profitability.

Historical Benchmark

A reference point derived from historical data against which current performance or achievements can be measured or compared.

Gain-Sharing Plan

A performance-driven compensation strategy where employees receive bonuses based on the company's savings or gains from improved productivity.

Labour Usage Ratios

Measures that compare the amount of labor used to the outputs achieved, helping businesses assess efficiency.