Differential Piece Rates System Refers To

question 65

Multiple Choice

Differential piece rates system refers to:

• A) an incentive pay plan in which the employer pays the rate per piece based on the difference in performance of employees.
• B) a wage system designed for salespeople who earn a differential pay for every piece sold.
• C) an incentive pay in which the piece rate is higher when a greater amount is produced.
• D) a system of linking pay increases to ratings on performance appraisals.
• E) an incentive pay plan where every employee is paid different wages based on the skills they possess.

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Definitions:

Selling Price

The price at which a product or service is offered for sale to a buyer.

Markup

The addition to the cost price of items to include overhead expenses and profits.

Total Job Cost

The complete cost associated with a specific job or project, including materials, labor, overhead, and any other costs directly related to the project.

Job M825

A specific designation for a job or project, often used within a job-order costing system to track costs and progress.