A Salary-Only Compensation Method Emphasizes

question 21

Multiple Choice

A salary-only compensation method emphasizes:

• A) Sales
• B) Sales follow-up
• C) Resolving disputes
• D) Maintaining relationships with suppliers
• E) Finding new sales leads

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Definitions:

Overhead Volume Variance

The difference between the budgeted and actual volume of activity, applied to the fixed manufacturing overhead rate, indicating efficiency in using production capacity.

Standard Hours

The set amount of time that a task is expected to take under normal working conditions.

Normal Capacity

The average production or operational level expected to be achieved under normal conditions, factoring in regular downtime and operational constraints.

Overhead Volume Variance

The difference between the budgeted overhead costs and the actual overhead incurred, based on the volume of production.