Thuy works in a factory sewing children's clothes. In addition to an hourly salary of $6.75, she earns 14 cents for every clothing item she finishes that passes quality inspection. What is Thuy's additional incentive structure called?
A) bonus
B) gainshare
C) commission
D) piece rate
E) profit share
Answer: D
Explanation: D) Under a piece rate incentive structure, an employee is paid according to how much output he or she produces. This is an example of pay for performance incentives.
You might also like to view...
Practical capacity is always used to calculate fixed overhead rates
Indicate whether the statement is true or false
The sales manager's decision to use new information technologies has costs as well as benefits.
Answer the following statement true (T) or false (F)
The acquisition of all the following assets are considered in capital budgeting EXCEPT
A) purchase of trucks. B) purchase of inventory. C) bringing a new product to market. D) purchase of office equipment.
Which is not an advantage of an ERP system?
A) Manufacturing can see orders when received. B) Purchasing keeps abreast of manufacturing needs. C) Sales can track order status. D) The accounting system is up-to-date. E) Many software packages are required.