Which of the Following Is Not a Tradeoff That Would

question 58

Multiple Choice

Which of the following is not a tradeoff that would be considered in setting a compensation budget?

• A) Seniority versus performance contingent pay
• B) To pay overtime for exempt versus nonexempt
• C) Employee contributions versus across the board increases
• D) Cash compensation versus benefits

---

Definitions:

Manufacturing Overhead

All indirect costs associated with the manufacturing process that are not directly attributable to a specific product, such as utilities and rent.

Predetermined Overhead Rate

A rate calculated by dividing estimated overhead costs by an allocation base, used to allocate overhead to products or services.

Direct Labour-Hours

The amount of time dedicated by employees for the manufacture of products, directly impacting production costs and efficiency.

Overhead Applied

Overhead applied refers to the allocation of overhead costs to specific jobs or production units based on a predetermined rate or basis.