Al's Company Just Instituted a New Compensation Program for Managers

question 84

Multiple Choice

Al's company just instituted a new compensation program for managers.Pay is based on competencies such as leadership, problem solving and strategic planning.Pay levels are preset and reflect the degree of competency.What kind of compensation system was used?

• A)Broad-banding
• B)Scanlon Plan
• C)Piece rate
• D)Ordering
• E)IMPROSHARE

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Definitions:

Declining-Balance Method

A method of calculating depreciation that results in larger depreciation charges in the early years of an asset's life and smaller charges later on.

Straight-Line Method

A depreciation technique where an equal amount of depreciation expense is recognized for an asset over each year of its useful life.

Units Produced

The total quantity of units manufactured during a specific period in a manufacturing or production process.

Depreciation Expense

The allocated amount of an asset's cost over its useful life, representing the wear and tear or obsolescence of the asset.