1. At a plant where car doors are manufactured, all of the following would be
classified as direct labor except:
a. Machinists.
b. Assembly workers.
c. Supervisor.
d. Painters.
ANSWER: c
RATIONALE: Maintenance w
...
1. At a plant where car doors are manufactured, all of the following would be
classified as direct labor except:
a. Machinists.
b. Assembly workers.
c. Supervisor.
d. Painters.
ANSWER: c
RATIONALE: Maintenance workers, while integral to the manufacturing process as the
because they do not actually add value to the product. Machinists, asse
manufacture of a car door.
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: PRIN.EDWA.16.1 – Introduction
ACCREDITING STANDAR
DS:
AACSB Reflective Thinking
ACCT.AICPA.FN.03 – Measurement
BUSPROG.06 – Reflective Thinking
IMA-Cost Management
OTHER: Bloom’s: Understanding
2. Wages of the following personnel would be classified as indirect labor except the:
a. painter.
b. supervisor.
c. fork lift driver.
d. plant janitor.
ANSWER: a
RATIONALE: The machinist would most likely be a direct laborer. The supervisor, fork
process, do not add value to the goods being produced.
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: PRIN.EDWA.16.1 – Introduction
ACCREDITING STANDAR
DS:
AACSB Reflective Thinking
ACCT.AICPA.FN.03 – Measurement
BUSPROG.06 – Reflective Thinking
IMA-Cost Management
OTHER: Bloom’s: Understanding
3. All of the following are characteristics of hourly wage plans except:
a. They provide no extra recognition for doing more than the minimum required.
b. They are easy to apply.
c. They establish a definite rate per hour for each employee.
d. They encourage employees to sacrifice quality in order to maximize earnings.
ANSWER: d
RATIONALE: Hourly wage plans pay a fixed rate per hour, so they are easy to apply, b
required, nor do they encourage employees to work so fast as to sacrific
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: PRIN.EDWA 16.14 – LO 3:1
ACCREDITING STANDAR
DS:
AACSB Reflective Thinking
ACCT.AICPA.FN.03 – Measurement
BUSPROG.06 – Reflective Thinking
IMA-Cost Management
OTHER: Bloom’s: Understanding
4. A wage plan based solely on an employee’s quantity of production is known as
a(n):
a. Modified wage plan.
b. Hourly-rate plan.
c. Incentive wage plan.
d. Piece-rate plan.
ANSWER: d
RATIONALE: A piece-rate plan bases an employee’s earnings strictly
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: PRIN.EDWA 16.14 – LO 3:1
ACCREDITING STANDARDS: AACSB Analytic
ACCT.AICPA.FN.03 – Measurement
BUSPROG.03 – Analytic
IMA-Cost Management
OTHER: Bloom’s: Remembering
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