An employee at CellWorks who produces 10 components in an hour earns $9 ($.90 × 10)per hour,while another employee who produces 15 components earns $13.50 ($.90 × 15).This is an example of a
A) commission plan.
B) differential piece rate plan.
C) direct commission plan.
D) profit-sharing plan.
E) straight piecework plan.

Question

Quizplus · Accepted Answer

This is an example of a straight piecework plan, where employees are paid a fixed rate per unit produced, in this case, $0.90 per component.

An Employee at CellWorks Who Produces 10 Components in an Hour