Which of the Following Is Not Characteristic of Time?based Compensation

question 105

Multiple Choice

Which of the following is not characteristic of time?based compensation systems?

• A) wages are easily calculated
• B) employees know what they will get in their regular paycheck
• C) simplicity
• D) normally used when measuring output per employee is not applicable
• E) lower cost per unit than output?based systems

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Definitions:

Generally Accepted Accounting Principles

A collection of commonly-followed accounting rules and standards for financial reporting.

Straight-Line Method

A way of calculating equal depreciation expenses for an asset over its useful life.

Total Interest Expense

The sum of all interest payments made on debts over a specified period.

Debt-to-Equity Ratio

A measure showing the balance of debt versus shareholders' equity employed in the procurement of company assets.