As an Incentive to Work Efficiently,some Organizations Pay Production Workers

question 73

Multiple Choice

As an incentive to work efficiently,some organizations pay production workers a ____,a wage based on the amount they produce.

• A) merit pay
• B) commission
• C) standard hour pay
• D) piecework rate
• E) special bonus

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Definitions:

Predetermined Overhead Rate

A rate calculated before the accounting period begins, used to allocate estimated overhead costs to products or job orders based on a chosen activity base.

Machine-Hours

A measurement of the amount of time machinery is operated, used in calculating production costs and efficiency.

Manufacturing Overhead

All manufacturing costs that are not directly attributable to a product, including indirect materials, labor, and other expenses.

Direct Labor-Hours

The total hours worked by employees who are directly involved in the production of goods.