Amanda Is Paid $0

question 20

Multiple Choice

Amanda is paid $0.45 for every widget she produces. This type of pay plan is

• A) a cafeteria plan.
• B) called piecework.
• C) part of a salary level.
• D) included in stock incentives.

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Definitions:

Break-Even Point

The point at which total costs and total revenues are equal, resulting in no net loss or gain.

Monthly Profit

The total revenue of a business minus the total expenses for the month, indicating the financial gain.

Variable Cost

Costs that change in proportion to the level of production or business activity, such as materials and labor.

Variable Cost

Costs that vary in direct proportion to changes in levels of production or business activity, such as materials and labor.