Under Which Pay System Does Each Worker Receives a Set

question 18

Multiple Choice

Under which pay system does each worker receives a set payment for each item produced or processed in a factory or shop?

• A) Process piecework plan
• B) Straight piecework plan
• C) Gainsharing piecework plan
• D) Guaranteed piecework plan
• E) Differential piecework plan

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Definitions:

Activity-Based Costing

A costing method that allocates overhead costs to specific products or activities based on their consumption of resources.

Estimated Overhead Cost

The projected cost of indirect production expenses for a specific period.

Expected Activity

The anticipated level of operations or production, often used for budgeting and planning.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing detailed insights into the actual costs of processes, products, or services.