Which of the Following Statements Regarding Incentive Systems Is FALSE

question 27

Multiple Choice

Which of the following statements regarding incentive systems is FALSE?

• A)Bonuses are often used at the executive levels.
• B)About half of all American manufacturing firms use productivity incentives.
• C)Profit-sharing systems provide some part of the profit for distribution to employees.
• D)The Scanlon plan is based on team productivity.
• E)Increasing use of cross-training has led to increasing use of knowledge-based pay systems.

---

Definitions:

Straight-Line Amortization

Straight-line amortization is a method of gradually reducing the cost of an intangible asset over its useful life in equal installments.

Bond Interest Expense

The cost incurred by an issuer of bonds for paying interest to bondholders.

Face Value

The nominal or dollar value printed on a financial instrument, such as a bond or stock certificate, representing its legal value.

Semiannually

A term that describes an event or action that occurs twice a year, typically every six months.