If an Employee Feels She Is Underpaid for the Effort

question 40

Multiple Choice

If an employee feels she is underpaid for the effort she exerts, she will probably:

• A) work harder
• B) not change her effort
• C) reduce her effort
• D) feel guilty

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Definitions:

Overapplied

In cost accounting, it refers to a situation where the allocated overhead for a period is more than the actual overhead incurred.

Underapplied

A situation where the assigned manufacturing overhead expenses fall short of the real overhead costs that have been spent.

Standard Labor-Hours

The predetermined amount of labor-hours expected to be required to produce a unit of product or perform a task.

Actual Output

The real production volume or amount of work done, as opposed to planned or theoretical outputs.