Which of the Following Is an Advantage of a Two-Tier

question 17

Multiple Choice

Which of the following is an advantage of a two-tier wage system?

• A) It helps move jobs out of the country.
• B) It helps eliminate jobs without any legal hassles.
• C) It helps reduce labor costs without cutting employees' existing salaries.
• D) It helps provide more pay to new employees.
• E) It provides better standards for benchmarking.

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Definitions:

Merchandise On Account

Goods that have been purchased but not yet paid for, often resulting in an accounts payable for the buyer.

Sales Allowance

A reduction in the selling price of goods or services, typically granted to customers for various reasons like minor defects or dissatisfaction.

Partial Derecognition

The process in accounting where only a portion of a financial asset or liability is removed from the balance sheet.

Receivables

These are amounts owed to a business by its customers for goods or services delivered on credit.