Lockbox Plan Is

question 86

Multiple Choice

lockbox plan is

• A) used to identify inventory safety stocks.
• B) used to slow down the collection of checks our firm writes.
• C) used to speed up the collection of checks received.
• D) used primarily by firms where currency is used frequently in transactions, such as fast food restaurants, and less frequently by firms that receive payments as checks.
• E) used to protect cash, i.e., to keep it from being stolen.

---

Definitions:

Straight Piecework Plan

A pay system where employees are compensated based on the number of units they produce or tasks they complete, directly linking pay to output.

Performance-Vested

Incentive plans where rewards, often in the form of stock options or bonuses, are given to employees based on achieving predefined performance targets.

Time-Based Restricted Stock

A type of stock option granted to employees as part of their compensation, with restrictions that lapse over a certain period of employment.

Vesting Occurs

The process by which an employee gains nonforfeitable rights over employer-provided assets or benefits, such as retirement funds, over time.