Which of the Following Is an Example of a Piece-Rate

question 146

Multiple Choice

Which of the following is an example of a piece-rate plan?

• A) commission
• B) time and a half for overtime
• C) productivity bonus
• D) US$2 for each unit produced
• E) none of the above

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Definitions:

Merchandise Purchases

The total cost of goods bought for resale during a specific period in a retail or wholesale business.

Cost of Goods Sold

The total cost of manufacturing and delivering a product to the customer, including raw materials, labor, and overhead.

Collections

The process of recovering amounts owed to a business by its customers.

Accounts Payable

Represents money owed by a company to its creditors or suppliers for goods and services received but not yet paid for.