Steve,a new employee,was surprised to learn that if his department was able to produce a given quantity of product in less time than before,the cost savings would,in part,be shared with every member of the department.This is an example of profit sharing.

Question

Quizplus · Accepted Answer

This scenario describes a productivity bonus or incentive plan rather than profit sharing, as the bonus is directly tied to the efficiency or productivity of the department rather than the overall profitability of the company.

Steve,a New Employee,was Surprised to Learn That If His Department