If TruLite management studied the light fabrication department and found that the departments should assemble 25 lamps per hour per worker and set its piece rate to get workers to meet output level, then this standard is called the:
A) risk premium.
B) benchmark.
C) incentive adjustment.
D) random element of production.

Question

Quizplus · Accepted Answer

The standard set by management for the light fabrication department to assemble 25 lamps per hour per worker and the piece rate set to encourage workers to meet this output level is called a benchmark. A benchmark is a standard or reference point against which performance can be measured. This is not a risk premium, incentive adjustment or a random element of production.

If TruLite Management Studied the Light Fabrication Department and Found