What should employees typically do to earn bonuses under the Scanlon plan?
A. They should improve their performance year after year so that they re-earn the bonus during each performance period.
B. They should follow a defined set of quality standards to produce the desired outcome.
C. They should produce products at a rate much higher than the standard production time.
D. They should keep labor costs to a minimum and produce as much as possible with that amount of labor.
E. They should create goodwill with customers and close as many sales as possible.
Answer: D
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Which of the following is a weakness of the average-cost approach?
A. It does not add a reasonable markup to the average cost of a product. B. It ignores competitors' costs and prices. C. It is not commonly used. D. It does not consider historical values. E. It is a complex method.
Given equal circumstances, which inventory method probably would be the most time consuming?
a. Specific identification b. FIFO c. Average-cost d. LIFO
Linkletter obtained a five-year sublease and paid $25,000 to the current tenant on January 1, 20X1. The entry to record the transaction is:
A) Leasehold 25,000 Cash 25,000 B) Lease Expense 25,000 Cash 25,000 C) Leasehold 20,000Lease Expense 5,000Cash 25,000 D) Leasehold 5,000 Cash 5,000
Which transfer price approach is used when the transfer price is set at the amount sold to outside buyers?
A) Market Price B) Cost Price C) Negotiated Price D) Variable Price