Larry Produced 40 Pressed Inner Fenders Out of Sheet Metal

question 115

Multiple Choice

Larry produced 40 pressed inner fenders out of sheet metal per hour and got paid $24 per hour ($0.60 x 40) but Michelle only produced 30 inner fenders per hour and got paid $18.00 ($0.60 x 30) .What type of compensation program are Larry and Michelle working under?

• A)Commission
• B)Merit pay
• C)Straight piece rate
• D)Bonus
• E)Pay differential

---

Definitions:

Project Termination

The process of concluding or finalizing a project after its objectives have been achieved or it has been determined that objectives cannot be achieved.

Incremental Cash Flows

The additional cash flow a business receives from taking on a new project or investment.

Replacement Decision

The evaluation process for determining whether to repair, maintain or replace an asset or piece of equipment.

Volume Of Operations

The scale or magnitude of the business activities that a company carries out in a specific period.