Which of the Following Statements Is True About a Piecework

question 1

Multiple Choice

Which of the following statements is true about a piecework rate plan?

• A) It can be used for all types of jobs and in all types of industries.
• B) It is best suited for complex jobs and tasks.
• C) It can be used to encourage teamwork and collaboration.
• D) It has a direct link between the work done by the employee and the amount earned.
• E) It encourages the employee's peers to perform and reduces conflicts.

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Definitions:

Standard Price

The predetermined cost assigned to materials, labor, and overhead, used in budgeting and variance analysis.

Labor Variances

Differences between the actual labor costs incurred during production and the standard or expected labor costs, which can indicate efficiencies or inefficiencies.

Direct Labor Data

Information regarding the labor costs directly associated with the production of goods or services, used for calculating product cost and efficiency.

Matrix Calculation

A mathematical operation involving arrays of numbers, particularly useful in solving systems of linear equations and in computer graphics.