The Piecework Plan Is Expressed in Monetary Terms, Whereas the Standard

question 28

Multiple Choice

The piecework plan is expressed in monetary terms, whereas the standard hour plan is expressed in

• A)dollars per standard.
• B)profits.
• C)cents per unit of output.
• D)a premium that equals the percent by which his or her performance exceeds a standard.
• E)cents per hour.

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Definitions:

General Factory

An umbrella term referring to the physical location where manufacturing operations occur, encompassing all areas of production.

Activity Rate

A rate used in activity-based costing to allocate overhead costs to products or services, based on their consumption of activities.

Activity-Based Costing

An accounting method that assigns costs to products or services based on the activities required to produce or deliver them, providing more accurate product costing.

Machine Setups

The process of preparing machines for a specific production run, involving adjustments and configurations specific to the product being manufactured.