Which Plan Rewards a Worker by a Premium That Equals

question 29

Multiple Choice

Which plan rewards a worker by a premium that equals the percent by which his or her performance is above standard?

• A) The differential piece-rate plan
• B) Gainsharing plan
• C) The percent incentive plan
• D) The premium plan
• E) The guaranteed piecework plan

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Definitions:

Direct Labour Rate Variance

The difference between the actual wages paid to workers and the standard cost of those wages for the actual hours worked.

Labour Efficiency Variance

A metric used to measure the difference between the actual hours worked and the standard hours expected to complete a task.

Standard Rate (SR)

Standard Rate (SR) refers to a predefined or established cost or value used in financial and operational calculations, often applied in budgeting and cost accounting.

Actual Hours (AH)

The real number of hours worked or required to complete a specific task or project, as opposed to estimated or planned hours.