An Efficiency Wage Is One That

question 15

Multiple Choice

An efficiency wage is one that

• A) increases the velocity of money.
• B) minimizes the firm's labor cost per unit of output.
• C) results from significant changes in technology and labor.
• D) is imposed by government to guarantee workers a living wage.

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Definitions:

Service Life

The estimated duration of time that an asset is expected to be usable for its intended purpose.

Asset Impairment

A significant and sudden decline in the usability or fair market value of an asset, which necessitates the reduction of its book value on financial statements.

FASB

Financial Accounting Standards Board, an independent nonprofit organization responsible for establishing accounting and financial reporting standards for companies and nonprofits in the United States.

Financial Statements

Reports that summarize the financial performance and financial position of a business, including the balance sheet, income statement, and cash flow statement.