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Four broad approaches to distributing the proceeds of a

Question - Four broad approaches to distributing the proceeds of a bonus pool in a profit-sharing plan are listed below:

Each person's share is based on salary

Each person receives an equal share

Each person's share is based on position in the organization (larger payments to people at higher levels)

Each person's share is based on individual performance relative to some target.

Question 1 - What are two reasons to support each alternative?

Question 2 - What are two reasons to oppose each alternative?

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Accounting Basics: Four broad approaches to distributing the proceeds of a

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Accounting Basics: Four broad approaches to distributing the proceeds of a

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