Gainsharing Is a Compensation System Which Is Based on

question 47

Multiple Choice

Gainsharing is a compensation system which is based on

• A) the number of products produced by a worker.
• B) the number of years a worker is employed.
• C) the worker's perceived motivation and effort.
• D) the effective performance of work groups.

Comprehend the effects of cash management decisions on opportunity costs and trading costs.

Understand the role and process of lockbox systems in improving cash management.

Identify the reasons for holding cash and the business activities it supports.

Assess the net float and its impact on a firm’s cash management.

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Definitions:

Overhead Costs

Costs that are not directly related to the creation of products or services, including rent, utilities, and salaries for administrative staff.

Production Capacity

The maximum output that a manufacturing or production facility can achieve within a given period under normal working conditions.

Volume Variance

Refers to the difference between the actual volume of output and the budgeted or expected volume, impacting costs and revenues.

Direct Labor Hour

A metric that quantifies the amount of time a worker spends producing goods or providing services that are directly associated with the cost of manufacturing a product or delivering a service.