Marty and Biff Both Work for the Same Company Producing

question 84

Multiple Choice

Marty and Biff both work for the same company producing the same teacups. Because they get paid a certain amount for each teacup they produce, and because Biff produces more teacups than Marty, Biff makes more money than Marty. This scenario is an example of a ______.

• A) piece rate plan
• B) profit sharing plan
• C) merit pay plan
• D) gainsharing plan

---

Definitions:

Average Collection Period

A measure of the average number of days it takes a company to collect payments from its credit sales.

Du Pont Analysis

A method of performance measurement that breaks down return on equity into three component parts: profit margin, asset turnover, and financial leverage.

Pearson's Product-moment

A correlation coefficient that measures the linear correlation between two variables X and Y, giving a value between +1 and -1.

Correlation Coefficient

The correlation coefficient is a statistical measure that calculates the strength and direction of the relationship between two variables.