Indirect Monetary compensation
Briefly describe the term ‘Indirect Monetary compensation’?
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Indirect Monetary Remuneration consists of following two forms which are illustrated below:
i) Profit Sharing : in that workers are permitted to have share in the profits earned through the company.
ii) Co-partnership : in that workers are approved ownership rights in the operations of the organization.
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Rs. Sales 2,40,000 Variable costs 1,44,000 Fixed costs 26,000 Profit before tax 70,000 Rate of tax 40% Firm is proposing to buy the new plant that could generate extra annual profit of Rs. 10,000. The fixed cost of new plant is expected to Rs. 4000. New plant would increase sales volume by Rs. 40,00
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