Which of the Following Is Not Characteristic of Time-Based Compensation

question 105

Multiple Choice

Which of the following is not characteristic of time-based compensation plans?

• A)stable labor costs
• B)easier to administer than output-based plans
• C)stable pay for workers
• D)simpler wage computations than output-based plans
• E)lower cost per unit than output-based plans

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Definitions:

Marginal Revenue

The extra revenue generated by the sale of an additional unit of a product or service.

Marginal Cost

The expense incurred in manufacturing an extra unit of a product or service.

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs, indicating excess over the opportunity cost.

Minimum Average Total Cost

The lowest point on the curve that shows the average cost of producing each unit of output when all input costs are considered over various output levels.