Jeff Owns and Manages a Small Electronics Repair Store

question 14

Multiple Choice

Jeff owns and manages a small electronics repair store.He determines the time required by his employees to complete each task assigned by him.When employees complete the repairs in less time,they receive an amount of pay equal to that time determined by him.In this scenario,Jeff is using a

• A) standard hour plan.
• B) differential piecework plan.
• C) merit pay plan.
• D) straight piecework plan.
• E) Scanlon plan.

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Definitions:

Initial Cost

Initial cost is the total expense incurred to acquire an asset or start a project, including purchase price and all related fees.

Net Present Value (NPV)

A financial metric that calculates the difference between the present value of cash inflows and the present value of cash outflows over a period of time, used to assess the profitability of investments.

Internal Rate of Return (IRR)

A financial metric used to evaluate the profitability of investments, representing the discount rate that makes the net present value of all cash flows from a particular project equal to zero.

Cost of Capital

The rate of return that a company must pay to its capital providers, including both equity and debt holders, for using their capital in the business.