Which of the Following Is NOT an Incentive Pay System

question 16

Multiple Choice

Which of the following is NOT an incentive pay system?

• A) BIC Corp. rewards employees who make a useful suggestion with free food at the company cafeteria.
• B) Experian offers a cash prize to the worker who develops the best solution to an organizational problem.
• C) A national jewelry chain offers annual bonuses to its repair workers who are especially productive.
• D) An airline pays pilots a base salary plus a bonus based on the number of "on-time" flights they flew.
• E) Lucent pays engineers with Master's degrees more than engineers with Bachelor's degrees.

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Definitions:

Historical Rate

The exchange rate used to convert transactions in foreign currencies to a domestic currency, based on the rate at the time of the transaction.

Self-Contained Unit

A segment or part of a business that operates independently or contains all necessary elements to function independently.

Current Rate Method

In currency translation, the method that uses the exchange rate at the balance sheet date to convert all financial statement items from a foreign entity's functional currency to the reporting currency.

U.S.GAAP

United States Generally Accepted Accounting Principles, the standard framework of guidelines for financial accounting used in the U.S.