The benefits distributed from profit sharing plans are usually allocated using one of these three ways.(Profit Sharing Plans)

Question

Quizplus · Accepted Answer

Allocating benefits using proportional payments based on salary and their contributions to profits allows for a fair distribution of the benefits. This ensures that both employees who contribute significantly to the profit of the company and those with higher salaries receive their fair share of the benefits. Equal payments may not be fair to employees who contribute differently to the company's profitability, while lump sum and graduated payments do not take into account each employee's unique contribution.

The Benefits Distributed from Profit Sharing Plans Are Usually Allocated