Nick Is Evaluating the Success of His Company's Profit-Sharing Program

question 21

Multiple Choice

Nick is evaluating the success of his company's profit-sharing program and asks you for your input. What advice would you give Nick that will help him gauge his program's effectiveness?

• A) Give the program time to succeed. It takes two or three years for a program to change overall company performance.
• B) If you tie the program to the company's strategies, it will be too hard to evaluate whether the program is successful.
• C) Make sure the goals of the program are general in nature; specific goals will be too hard to meet.
• D) Only let management be involved in the creation of the program; employee input complicates the process.

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Definitions:

Sales Commissions

A portion of sales revenue that is paid to sales employees or agents as a reward for the sales they make.

Selling Expenses

Costs incurred directly and indirectly in selling products or services, including advertising, sales commissions, and retail store expenses.

Advertising Expenses

Costs incurred in promoting products, services, or brands through various media, including print, online, television, and radio channels.

Material B

Material B refers to a specific classification of inventory or supplies used in the production process of goods, distinct by its type, properties, or its designated use within a manufacturing setting.