A Sewing Mill That Has Set an Hourly Standard for Machine

question 25

Multiple Choice

A sewing mill that has set an hourly standard for machine operators of sewing 25 shirts per hour.Wages are calculated by multiplying the number of shirts completed by the piece rate for one shirt.Employees who exceed the standard of 25 shirts per hour make higher wages based on the additional piece rate per unit completed.The mill is using a __________ play plan.

• A) merit
• B) differential piece rate
• C) straight piecework
• D) Deming

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Definitions:

Sales Discounts

Reductions in the price of goods sold, offered to customers as an incentive to either prompt payment or increase sales volume.

Vouchers Payable

Liabilities or debts owed by a company for purchases made on credit, documented by vouchers.

Gross Method

An accounting practice where purchases are recorded at their full invoice amount without deducting any purchase discounts.

Periodic Method

An accounting approach used to value inventory and determine the cost of goods sold in which physical counts are done periodically, typically at the end of an accounting period.