COST ACCOUNTING
INTRODUCTION TO COST ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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result in immediate reward every payday
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provide for proportionately more pay for output above standard
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be applicable to situations in which a worker can increase output
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all of the above
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Detailed explanation-1: -What is an Incentive Wage Plan? An incentive wage plan offers an increased level of compensation when employee performance exceeds a threshold level. These plans are intended to incentivize employees to become more efficient and effective in completing their designated tasks.
Detailed explanation-2: -Two basic requirements of an effective incentive plan include: • Employees should believe that accurate methods and procedures are used to rate employee performance • Incentives (rewards) must be based on performance.
Detailed explanation-3: -The need for employee incentive plans cannot be understated. They function as rewards that motivate workers to achieve set goals and challenge them to achieve even more. In turn, this motivation contributes to company success.