Which of the Following Is One Advantage of Variable-Pay Plans

question 61

Multiple Choice

Which of the following is one advantage of variable-pay plans to management?

• A) They turn low producers into high producers.
• B) They turn lower performance into fewer employees.
• C) They turn slow employees into fast employees.
• D) They turn high fixed costs into low fixed costs.
• E) They turn fixed labor costs into variable labor costs.

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Definitions:

Terms 2/10, n/30

Payment terms indicating a 2% discount if the bill is paid within 10 days; otherwise, the net amount is due in 30 days.

Discount

A reduction from the usual cost of something, or an amount deducted from the regular price or interest rate.

Perpetual Inventory System

An inventory accounting technique that immediately logs the sale or acquisition of inventory using computerized point-of-sale systems and enterprise asset management software.