If Berkeley Shirtmakers Tie Compensation Directly to Output by Paying

question 160

Multiple Choice

If Berkeley Shirtmakers tie compensation directly to output by paying an employee a certain amount for each unit of output produced, it is using

• A) the soldiering system.
• B) an illegal system.
• C) the Mayo system.
• D) a piece-rate system.
• E) a system that reduces the pay of most manufacturing employees.

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Definitions:

Depreciation

The process of allocating the cost of tangible assets over their useful lives.

Total Asset Turnover

A financial ratio measuring a company's ability to generate sales from its assets by comparing sales with the average total assets.

Net Sales

The revenue from goods or services sold after deducting returns, allowances for damaged or missing goods, and discounts.

Average Total Assets

a metric calculated by dividing the sum of assets at the beginning and end of a period by two, used to measure a company's asset efficiency.