A Lump Sum Bonus Is

question 173

Multiple Choice

A lump sum bonus is

• A)a payment that employees receive as part of the Scanlon plan.
• B)a wage incentive that is awarded in a single payment and built into base pay.
• C)a wage incentive that is awarded in a single payment and not built into base pay.
• D)merit pay that is awarded in a single payment and not built into base pay.
• E)merit pay that is awarded in a single payment and built into base pay.

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Definitions:

Safety Stock

Inventory maintained beyond expected demand, providing a safeguard against unpredictability in supply chain and demand patterns, ensuring consistent availability of products.

Lead Time

The amount of time it takes for an order to be fulfilled from the moment it is placed.

Setup Cost

The cost incurred to prepare equipment or processes for manufacturing or production.

Material Use Schedule

Material use schedule outlines the timing and quantity of materials to be used in a production process, ensuring efficient resource management and planning.