Which of the following statements relating to incentive payments is correct?
A. In Halsey incentive plan, bonus paid to a worker is equal to 50% of the time saved, divided by the rate per hour
B. In Rowan incentive plan, bonus paid to the employee is equal to the proportion of the time saved to the standard time
C. In Taylor's differential piece rate system, a worker whose output exceeds standard output is paid 100% of piece rate, and a worker whose output falls short of the standard is paid only 50% of piece rate
D. The Rowan incentive plan is the base of all other incentive payment plans
Answer: Option B
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
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