Which of the Following Best Describes Profit Sharing

Multiple Choice

Which of the following best describes profit sharing?

A) a gainsharing program in which employees receive a bonus if the ratio of labor costs to the sales value of production is below a set standard
B) incentive pay in which payments are a percentage of the organization's profits and do not become part of the employees' base salary
C) a group incentive program that measures improvements in productivity and effectiveness and distributes a portion of profit to employees
D) a combination of performance measures directed toward the company's profit and used as the basis for awarding incentive pay
E) an incentive plan where a percentage of the previous year's profits is provided to the employees as a part of their salary