Mario Development Group Wants to Give Employees Incentives While Getting

question 16

Multiple Choice

Mario Development Group wants to give employees incentives while getting the maximum tax advantage for them and the firm.Flexibility in compensation costs is important.The firm needs to keep fixed compensation low while still attracting high quality job candidates.Which of the following would be most appropriate for Mario Development Group?

• A) Scanlon plan
• B) Rucker plan
• C) Profit sharing
• D) Merit pay

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Definitions:

Double Declining Balance

An accelerated method of depreciation which doubles the rate at which an asset is depreciated compared to the straight-line method.

Straight Line

A method for calculating depreciation or amortization by equally spreading the cost over the useful life of the asset.

Depreciation Expense

The allocated portion of the cost of a tangible asset over its useful life, intended to account for the decrease in value due to use and age.

Units-Of-Output Method

A depreciation method where the expense is based on the actual usage or production output of the asset.