Which of the Following Is True of an Efficiency Wage

question 60

Multiple Choice

Which of the following is true of an efficiency wage?

• A)It refers to the markup of the actual wage over the minimum wage.
• B)It refers to the wage paid to workers above their opportunity cost,which compels them to work harder.
• C)It refers to the wage paid to workers that minimizes total expenditure on labor costs.
• D)It measures the markup of wages paid to workers and their actual output.

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Definitions:

Cost Driver

A factor that has a direct impact on the cost of a business's activities.

Abnormal Spoilage

The waste or destruction of inventory beyond what is expected in normal operational processes, usually not considered a production cost.

Process Costing System

An accounting method used to allocate costs to units of production in continuous operations, common in industries like manufacturing and refining.

Units Transferred Out

The quantity of items moved from one stage of production to the next or finished products delivered to customers.