What Is the Difference Between "Straight-Time Pay," "Commission Pay," and "Piece-Rate

question 191

Essay

What is the difference between "straight-time pay," "commission pay," and "piece-rate pay"?

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Definitions:

Direct Labor-hours

The aggregate amount of time spent by staff directly participating in the production process or in service provision.

Variable Overhead Efficiency Variance

A financial metric indicating the difference between the actual variable overhead costs incurred and the expected (or standard) costs, based on the efficient use of variable inputs.

Variable Manufacturing Overhead

Costs that fluctuate with the level of production output, such as utilities or materials that vary with production volumes.

Direct Labor-hours

The total amount of time spent by workers directly involved in the manufacturing of a product.