Which of the Following Best Explains 'Pay for Production

question 7

Multiple Choice

Which of the following best explains 'pay for production'? 

• A) Payment is made monthly based on units supplied. 
• B) Payment is made by the manufacturer on the basis of labour costs of the component supplier. 
• C) The manufacturer only pays the supplier for the components which have actually been consumed during the production of a given day or batch. 
• D) Payment is based on the number of hours required for the production of each unit of the component.

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Definitions:

Subjective

Based on or influenced by personal feelings, tastes, or opinions, rather than external facts.

Examiner

A person or tool that assesses someone or something in terms of quality, skill, or knowledge.

Lumen

The interior space of a tubular structure, such as an artery or intestine.

Tube-Like Organ

A hollow body part that resembles a tube in shape, facilitating the passage or transport of substances.