Which of the Following Is True of a Job-Based Pay

question 78

Multiple Choice

Which of the following is true of a job-based pay structure?

• A)It encourages employee initiatives.
• B)It allows the organization to take advantage of the skills of those closest to production.
• C)It encourages lateral movement of employees.
• D)It reinforces a top-down decision-making process.
• E)It discourages promotion-seeking behavior.

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Definitions:

Factory Burden Costs

Costs associated with manufacturing operations that are not directly tied to a specific product, such as maintenance, utilities, and depreciation of factory equipment.

Non-manufacturing Costs

Expenses not directly related to the production of goods, such as administrative, selling, and marketing costs.

Theoretical Capacity

The highest possible level of production an organization can achieve under ideal circumstances, with no downtime for maintenance or repairs.

Peak Efficiency

The state of operating at the highest possible efficiency where resources are used most effectively, often related to machines, processes, or systems.