A Piece-Rate Contract Is a Labor Contract in Which a Worker

question 148

Multiple Choice

A piece-rate contract is a labor contract in which a worker is

• A)promised a given percentage increase in wage every year.
• B)told how many pieces he or she must produce each day.
• C)guaranteed a piece of the company profits.
• D)paid according to a complicated formula involving the interest rate.
• E)paid a given amount for each unit of output he or she produces.

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Definitions:

Equity Method

An accounting technique used to record investments where the investor has significant influence but does not control the investee.

Net Income

The remaining earnings of a company after subtracting total expenses and taxes from its gross revenue.

Dividends

Payments made by a corporation to its shareholders, usually out of profits or reserves.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue; a key indicator of financial health.