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:

Direct Labor-hours

The total hours of labor directly involved in the manufacturing process of a product.

Labor Rate Variance

It is the difference between the actual cost of labor and the budgeted or expected cost of labor.

Standard Cost System

A standard cost system is a method of cost accounting that uses estimated costs for materials, labor, and overheads to compare against actual costs incurred, facilitating variance analysis and budgeting.

Actual Results

The real outcomes or data achieved at the end of a specified period, measured against planned or forecasted figures.