Merit Pay Is an Attempt to Make Pay Contingent Upon

question 125

Multiple Choice

Merit pay is an attempt to make pay contingent upon __________.

• A) tenure in the organization
• B) specific competencies
• C) a willingness to acquire and develop job related skills
• D) performance
• E) years of experience in the industry

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Definitions:

Annual Overhead

The total expenses incurred by a business to operate over the course of a year, excluding direct labor and materials costs.

Direct Labor Hours

Direct labor hours are the total hours worked by employees directly involved in the production of goods or services.

Overhead Rate

The rate at which indirect costs are allocated to produced goods or services.

Direct Labor Dollar

The total cost of wages paid to workers who are directly involved in the production of goods or delivery of services.