Which of the Following Statements Holds True for Gainsharing

question 64

Multiple Choice

Which of the following statements holds true for gainsharing?

• A)It is the right to buy a piece of the business given to an employee to reward excellent service.
• B)It is a form of pay in which an organization shares the profit with employees, such that employees receive a portion of the profit achieved from their efforts.
• C)It requires employees to build project teams across countries.
• D)These plans are most effective in companies with more than 1,000 people.
• E)It refers to the cash wage paid at the end of every month in lieu of the service rendered to the company.

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Definitions:

Cash Budget

A budget that estimates cash inflows and outflows over a specific period, used to assess whether a company has sufficient cash to meet its obligations.

Budgeted Required Production

The quantity of product that a company plans to manufacture in a specific period, determined based on sales forecasts and inventory targets.

Direct Labor Wage Rate

The rate of compensation paid to employees who directly work on the production of goods or services.

Raw Materials Cost

The expense incurred by a company for the raw materials that are used in the manufacturing process to produce finished goods.