An ESOP Is An

question 8

Multiple Choice

An ESOP is an:

• A) equitable stock ownership plan
• B) employee stock ownership plan
• C) employee salary option program
• D) equity in salary organizational plan
• E) employer/subordinate organizational profit

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Definitions:

Direct Labor Cost

The cost of wages and other benefits for workers directly involved in the production process.

Variable Costing

An accounting method that only considers variable costs (costs that change with production volume) in product costing and in the calculation of net income.

Absorption Costing

A method of product costing that includes all manufacturing costs, both variable and fixed, in the cost of a product.

Direct Labor Cost

The wages and related benefits paid to workers who are directly involved in the production of goods or services.