All but Which of the Following Are Considered Strengths of Piece

question 15

Multiple Choice

All but which of the following are considered strengths of piece rate plans?

• A) They ensure cost efficiency.
• B) They use subjective performance standards.
• C) They remove supervisory bias.
• D) They tie rewards directly to performance.

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Definitions:

Direct Labor Budget

A financial plan that forecasts the costs associated with the labor directly involved in the production of goods or services.

Direct Labor-Hour

A metric indicating the total hours worked by employees directly involved in the production process, often used for costing purposes.

Labor Rate

The amount paid to an employee per unit of time, usually per hour or year.

Direct Materials Purchase Budget

A financial plan that estimates the quantities and costs of direct materials to be purchased to meet production requirements.