Two Aspects of Compensation System Documentation Include the Compensation System

question 36

True/False

Two aspects of compensation system documentation include the compensation system itself and a process to document assignment of specific tasks.

---

Definitions:

Equivalent Units

A measure used in process costing that converts partially completed units into a number of fully completed units.

Production Cost

The direct and indirect expenses incurred to manufacture goods or provide services.

Equivalent Units

A concept in cost accounting used to denote the amount of work done on incomplete units, expressed in terms of fully completed units.

Physical Units

A measure of production output or inventory in terms of the actual number of units, as opposed to the cost or value of the units.