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:

Contract Manufacturing

The hiring of a foreign company to produce a specified volume of the initiating company’s product to specification; the final product carries the domestic firm’s name.

Licensing

Licensing is the process whereby a company allows another entity to use its intellectual property, brand, or product for a specified period in exchange for fees or royalties.