What Type of Gainsharing Plan Determines Employee Bonuses by Dividing

question 92

Multiple Choice

What type of gainsharing plan determines employee bonuses by dividing payroll expenses by total sales?

• A) Lincoln
• B) Rucker
• C) Improshare
• D) Scanlon
• E) Skinner

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Definitions:

T-Accounts

A visual representation of accounts in the general ledger of a company, used to understand the effects of transactions on each account.

Machine-Hours

A measure of the amount of time machines are used in the production process, often used as a basis for allocating manufacturing overhead costs.

Manufacturing Overhead

Indirect factory-related costs that are incurred when a product is manufactured.

Predetermined Overhead Rate

A rate calculated before the accounting period begins, used to assign overhead costs to products based on a selected activity base.