The Master Budget Process Usually Ends With

question 8

Multiple Choice

The master budget process usually ends with:

• A) The production budget.
• B) The sales budget.
• C) The selling expense budget.
• D) The budgeted balance sheet.
• E) The overhead budget.

---

Definitions:

Scanlon Plan

A participative management approach focusing on employee involvement in improving productivity and sharing the resulting cost savings as bonuses.

Gain-Sharing

A performance-based compensation strategy where employees receive bonuses based on the company's savings or increased profitability due to their efforts.

Pay Secrecy

Policies or practices that restrict employees from sharing or discussing their salary information with others.

Merit Pay Plan

A compensation strategy that rewards employees based on their performance and achievements rather than their position or seniority.