Methods for Paying Employees on the Basis of Output Are

question 15

Multiple Choice

Methods for paying employees on the basis of output are usually referred to as __________ forms of compensation.

• A) new
• B) piecework
• C) output
• D) incentive

Appreciate the importance of financial statement notes and disclosures.

Identify the role of major regulatory bodies in accounting.

Understand revenue recognition principles.

Grasp the structure of the balance sheet and its elements.

---

Definitions:

Revenue

The total income generated from the sale of goods or services before any expenses are subtracted.

Marginal Product

The additional output that is produced by adding one more unit of a specific input, while holding all other inputs constant.

Diminishing Returns

The decrease in the marginal (incremental) output of a production process as the amount of a single factor of production is incrementally increased, while other factors are kept constant.

Average Cost

The total cost of production divided by the number of goods produced.