If a Corporation Compares Its Compensation and Performance Evaluation Systems

question 7

Multiple Choice

If a corporation compares its compensation and performance evaluation systems to it best competitors, it has engaged in:

• A) plagiarism.
• B) patent infringement.
• C) benchmarking.
• D) specific knowledge enhancement.

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Definitions:

Predetermined Overhead Rate

A rate calculated before a period begins, based on the estimated overhead costs and estimated activity base, used to allocate overhead costs to products or services.

Direct Labor Costs

Expenses attributed to the payment of employees directly involved in the production of goods or services.

Machine Hours

A measure of the amount of time a machine is operated, used in allocating manufacturing overhead costs.

Predetermined Overhead Rate

A rate used to allocate overhead costs to products or services, calculated before the period begins based on estimates of total costs and activity levels.