Which Statement Is True About Standard Hour Plans

question 4

Multiple Choice

Which statement is true about standard hour plans?

• A) They encourage employees to focus exclusively on customer service.
• B) They succeed only for employees who are not motivated by money.
• C) They encourage employees to focus mainly on quality.
• D) In terms of their pros and cons, they are very different from piecework plans.
• E) They encourage employees to work as fast as they can.

---

Definitions:

General Factory

A term generally referring to the main production site where various goods are manufactured.

Activity-Based Costing

A method of accounting that recognizes and allocates expenses to overhead operations, before distributing those expenses to the products.

General Factory

Expenses related to the general operation of a manufacturing plant, not directly tied to specific units of production.

Activity-Based Costing

A costing method that assigns costs to products based on the activities needed to produce those products, aiming to provide more accurate product costing.