Paying a Set Rate of Pay for Each Unit Produced

question 70

Short Answer

Paying a set rate of pay for each unit produced is a ________ piecework plan, whereas changing the rate of pay based on how many units are produced is known as a ________ piecework plan.

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Definitions:

Operating Cycle

The duration of time it takes for a company to purchase inventory, sell the goods, and receive cash from sales.

Average Sale Period

The average time it takes for a company to convert its inventory into sales.

Times Interest Earned

An indicator of how well a business can fulfill its debt repayments by evaluating its earnings prior to interest and taxes against its interest expenditures.

Debt-To-Equity Ratio

An indicator of how a firm's assets are funded, reflecting the ratio of equity and debt in financing.