A negative side of a revenue-sharing plan is that it:
A) does not induce hard or better work.
B) can be costly if revenues are low.
C) gives no incentive for workers to minimize costs.
D) can be difficult to manage from an accounting standpoint.

Question

Quizplus · Accepted Answer

Revenue-sharing plans typically focus on sharing profits or revenues, not on minimizing costs, which means workers might not be incentivized to reduce expenses as their rewards are tied to revenue, not cost savings.

A Negative Side of a Revenue-Sharing Plan Is That It