An Efficiency Wage Is

question 190

Multiple Choice

An efficiency wage is

• A)a wage payment necessary to compensate workers for risk of injury on the job.
• B)a "wage" that contains a profit-sharing component as well as traditional hourly pay.
• C)an above-market wage that minimizes a firm's labor cost per unit of output.
• D)a wage that automatically rises with the national index of labor productivity.

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Definitions:

Activity-based Costing

An accounting method that assigns costs to products or services based on the activities and resources used to produce them.

Specialized Electric Motors

Electric motors that are designed and manufactured for specific applications or to meet particular requirements, distinguishing them from standard or generic motors.

Cost Drivers

Factors that cause changes in the cost of an activity or operation, influencing the total expenses.

Manufacturing Overheads

Expenses related to the manufacturing process that are not directly tied to the production of individual units, such as factory rent and machinery maintenance.