When Applied to Non-Management Employees,which of These Has a Relatively

question 86

Multiple Choice

When applied to non-management employees,which of these has a relatively WEAK connection between the reward and individual effort?

• A)Piece rate pay
• B)Commissions
• C)Profit-sharing bonuses
• D)All of the answers are correct.
• E)Commissions and profit-sharing bonuses

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Definitions:

Equivalent Units

A concept used in cost accounting to convert partially completed goods into the equivalent of fully completed units.

Materials

Refers to the substances or components that are used to manufacture or create a product.

First Processing Department

The initial stage or section in a manufacturing process where raw materials are first transformed into work-in-progress.

Total Cost Transferred

The combined cost of goods or services that is moved from one process or department to another within the same company.