Robix Industries has announced the rollout of a new incentive program for its production team. A baseline of performance has been established based upon actual production numbers from the last six quarters. If productivity exceeds that deadline in a quarter, 80 percent of the money that is saved will be given to the employees. What type of plan is this?
A)Profit sharing
B)Stock option
C)Perquisite
D)Gain sharing

Question

Quizplus · Accepted Answer

This plan is a gain sharing plan, as employees are rewarded for exceeding a baseline of production and saving the company money. Gain sharing plans are a form of incentive compensation that promote teamwork and productivity.

Robix Industries Has Announced the Rollout of a New Incentive