Which of the following is when compensation is tied to unit-level performance where revenue increases (or cost savings) are shared with an employee?
A) piece-meal plan
B) gain-sharing plan
C) stock options
D) profit-sharing plan

Question

Quizplus · Accepted Answer

Gain-sharing plan is when compensation is tied to unit-level performance where revenue increases (or cost savings) are shared with an employee. Piece-meal plan is a type of pay system where employees are paid based on the quantity of units produced or tasks completed. Stock options are a form of compensation that gives employees the opportunity to purchase company stock at a discounted price. Profit-sharing plan is a type of pay system where a portion of company profits is distributed to employees at the end of the year.

Which of the Following Is When Compensation Is Tied to Unit-Level