Chapter 10: Quiz
The standard time for producing one unit of work in a job paying $11.50 per hour is 12 minutes. Given this information, the piece rate per unit is _____.
$2.30
Brython, an employee at a toy manufacturing company, is paid $15 an hour to produce 100 toys per day. The standard time for producing one toy is 15 minutes. Given this information, the piece rate is _____.
$3.75 per unit
Which of the following is an individual incentive plan that sets incentive rates based on the completion of a job in a predetermined standard time?
A standard hour plan
Which of the following is an enterprise incentive plan?
A stock option plan
Which of the following programs permits salespeople to be paid for performing various duties that are not reflected immediately in their sales volume?
A straight salary plan
Who among the following received an individual incentive?
Heather earned a $5,000 bonus for meeting her sales goal in the first quarter.
_____ is a gainsharing program under which bonuses are based on the overall productivity of a work team.
Improshare
Which of the following is true of incentive plans?
Incentive payouts are a means to reward or attract top performers when salary budgets are low.
Which of the following is true of an incentive pay program?
Incentives are a way of distributing success among those responsible for producing that success.
Which of the following is an individual incentive plan?
Merit pay
_____ are nonmonetary rewards given to executives.
Perquisites
Which of the following is a disadvantage of the straight commission plan?
Salespeople are tempted to grant price concessions.
In the context of group incentive plans, which of the following incentive plans uses employee and management committees to gain cost-reduction improvements?
The Scanlon plan
The piecework system is less likely to succeed when:
quality is more important than quantity.
In the context of individual incentive plans, under _____, employees receive a certain rate for each unit produced.
straight piecework
