Employees Are Sometimes Compensated on the Basis of a Piece

question 45

Multiple Choice

Employees are sometimes compensated on the basis of a piece rate-$2.50 for each haircut for example. A piece- rate is likely to be the preferred form of compensation when the worker controls:

• A)the quality of the product but not the rate of production.
• B)the rate of production but not the quality of the product.
• C)neither the rate of production nor the quality of the final product.
• D)the rate of production and quality of the final product.

---

Definitions:

Depreciation

Allocating the cost of a physical asset across its life of utility in a systematic manner.

Acquires Land

The process by which a company or individual procures land as an asset.

Land

The surface of the earth, including the soil and anything attached to it naturally, used as a fixed asset in accounting, with no depreciation over time.

Closing Costs

Fees and expenses, beyond the price of the property, incurred by buyers and sellers in transferring ownership of real estate.