Workers Who Dislike Risk

question 68

Multiple Choice

Workers who dislike risk

• A)prefer to be paid monthly rather than weekly or daily.
• B)prefer a piece-rate compensation system to a salary system.
• C)prefer a salary system to a commission compensation system.
• D)prefer to be paid a salary rather than a wage.

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Definitions:

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual products or job orders, based on a certain activity base.

Machine-Hours

A measure of production output or activity based on the number of hours machines are operated in the manufacturing process.

Job-Order Costing System

An accounting method used to accumulate and assign costs to custom or unique products or jobs.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to products or job orders, based on estimated costs and activity levels.