Competency-Based Pay Plans Are Different from Skill-Based Plans in That

question 30

Multiple Choice

Competency-based pay plans are different from skill-based plans in that:

• A)competency-based plans are a type of job-based pay structures
• B)competency-based plans are applied only to blue-collar jobs
• C)competency-based plans eliminate the need to control costs
• D)competency-based plans do not allow for lateral movement
• E)competency-based plans are not very specific; they are more general, paying for broadly applicable knowledge, skills and behaviour

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Definitions:

Factory Overhead

Indirect costs related to the manufacturing process, such as utilities, maintenance, and manager salaries that cannot be directly attributed to the production of specific goods.

Equivalent Units

Equivalent units are a concept in cost accounting used to express the amount of work done during a period in terms of fully completed units of output, facilitating the calculation of cost per unit.

Job Order

A work authorization for a specific task or project, often including details such as materials, labor, and overhead costs.

Cost Of Production Report

A document that summarizes the production and cost activity within a specific period, often used in process costing environments.