Russell Works in a Canvas Factory Where Workers Are Paid

question 5

Multiple Choice

Russell works in a canvas factory where workers are paid five dollars for every tent they sew together. Workers who are very fast may make twice as much money as some of the slower workers. Which of the following compensation plan elements is used at Russell's factory?

• A) merit pay
• B) piece-rate
• C) gainsharing
• D) profit sharing
• E) lump-sum bonus

---

Definitions:

Damaged

Refers to goods or items that are impaired, reduced in value, or made less useful due to wear, tear, or harm.

Sales Revenue

The total amount of income generated from the sale of goods or services related to a company's primary operations.

Contra Revenue Account

An account that is offset against a revenue account on the income statement.

Sales Returns

Goods returned by customers to the seller after the sale, often due to defects, not meeting the buyer's needs or other reasons.