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:

Total Cost

The complete cost of production, including both fixed and variable costs.

Unit Price

The cost per unit of a product or service.

Constant Cost

An economic scenario where the cost of producing an additional unit of a good or service remains unchanged, regardless of the scale of production.

Equilibrium Quantity

The quantity of goods supplied is equal to the quantity demanded at a given price level.