The First Step in Implementing a Gainsharing Plan Is to ________

question 54

Multiple Choice

The first step in implementing a gainsharing plan is to ________.

• A) choose specific performance measures
• B) decide on a funding formula
• C) decide how often to pay bonuses
• D) establish general plan objectives
• E) develop an involvement system

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Definitions:

Interfirm Comparisons

The analysis and evaluation of a company's performance or financial health in relation to its competitors or industry standards.

Deferred Tax Asset

An item on a company’s balance sheet that represents the difference in timing between when a tax is accrued and when it is paid, potentially reducing future tax liability.

Tax Rate Change

An alteration in the percentage at which an individual or corporation is taxed, which can affect financial planning and net income.

Temporary Difference

A difference between the carrying amount of an asset or liability in the balance sheet and its tax base that will result in taxable or deductible amounts in future years.