Gainsharing Is an Incentive Plan That ________

question 28

Multiple Choice

Gainsharing is an incentive plan that ________.

• A)uses a trust to hold stock in individual employee accounts and distributes it to employees upon retirement
• B)engages employees in a common effort to achieve a company's productivity objectives with any resulting cost-savings gains shared among employees and the company
• C)contributes company shares of its own stock or cash to be used to purchase company stock to a trust established to purchase shares of the firm's stock for employees
• D)provides tax advantages for employees by deferring income taxes, often until the employee retires

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Definitions:

Balance Sheet

A statement that provides a snapshot of a company's financial status, including assets, liabilities, and shareholders' equity at a defined point in time.

FOB Destination

A shipping term where the seller bears shipping costs and retains ownership until the goods reach the buyer's location.

Legal Title

The formal ownership of an asset or property, recognized by law, granting the holder specific rights and responsibilities.

Cost of Goods Available

It represents the total value of inventory available for sale during a period, calculated by adding the cost of goods purchased or manufactured to the opening inventory.