Which of the following is not a reason management would prefer a profit-sharing plan to a COLA?

Question

Quizplus · Accepted Answer

While profit-sharing plans may be less expensive to implement initially, they are not always less expensive in the long term as they are based on the company's profitability. A COLA, on the other hand, has a clear cost and is usually based on the cost of living index, which is not always tied to company profits. Thus, this reason would not be a factor in management's preference for a profit-sharing plan over a COLA.

Which of the Following Is Not a Reason Management Would