LaDonna Nilsson Assembles Electronic Boards

question 9

Multiple Choice

LaDonna Nilsson assembles electronic boards.She is paid $4 a board for the first ten boards,then $6 for each one over that.Nilsson is working on which of the following systems?

• A) commission
• B) task-reward
• C) piecework payment
• D) comparable worth

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Definitions:

Cash Discounts

An incentive offered by sellers to buyers for early payment of invoices, aimed at encouraging prompt payment and improving cash flow.

Short-term Financial Policy

Pertains to strategies and decisions related to managing a company’s current assets and liabilities to ensure liquidity.

Flexible Short-term Policy

A financial strategy that allows for maintaining a higher level of current assets, providing a buffer against unforeseen liabilities or expenses.

Restrictive Short-term Policy

A financial policy aimed at minimizing the amount of working capital to reduce short-term financing costs, often at the risk of running low on liquidity.