Employees in a Production Department May Receive a Basic Wage

question 96

Multiple Choice

Employees in a production department may receive a basic wage or salary plus a bonus that consists of a payment for each unit produced.This is called a:

• A) payments for suggestions.
• B) production bonus system.
• C) piecework system.
• D) commission.

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Definitions:

Monetary Items

Financial elements that are fixed or determinable in terms of money and do not change in value over time, such as cash and receivables.

Temporal Method

An accounting method used to convert the financial statements of a foreign subsidiary, using exchange rates based on the time assets and liabilities were acquired.

Functional Currency

The currency of the primary economic environment in which an entity operates, used in its financial reporting.

Consolidation

The process in accounting of combining the financial statements of two or more entities controlled by the same owner into a single set of statements.