A Management Report Identified the Following Labour Usage Ratios for a Window

question 31

Multiple Choice

A management report identified the following labour usage ratios for a window manufacturer in Richmond,British Columbia: 1.4 hours of labour per window in 2015; 1.25 hours of labour per window in 2016.Management makes the arbitrary decision to set next year's gain-sharing cutoff at 1.325 labour hours per window (the average of the 2015 and 2016 figures) .Which gain-sharing plan is management using?

• A) Scanlon plan
• B) family of measures plan
• C) Rucker plan
• D) Improshare plan

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Definitions:

Cost Driver

A factor that causes or relates to a change in the cost of an activity or product.

Activity-Based Budgeting (ABB)

A budgeting approach that determines the cost of activities necessary for producing a product or service, aiming to improve cost efficiency.

Activity-Based Costing (ABC)

A costing methodology that assigns overhead and indirect costs to specific activities, thereby providing more accurate cost information.

Sales Volume

Refers to the number of units of product or service sold by a company over a specific time period, indicating business activity level.