Marty and Biff both work for the same company producing the same teacups. Because they get paid a certain amount for each teacup they produce, and because Biff produces more teacups than Marty, Biff makes more money than Marty. This scenario is an example of a ______.
A) piece rate plan
B) profit sharing plan
C) merit pay plan
D) gainsharing plan

Question

Quizplus · Accepted Answer

This scenario is an example of a piece rate plan, where employees are paid a fixed rate for each unit (in this case, teacups) they produce. Since Biff produces more teacups than Marty, he earns more money under this system.

Marty and Biff Both Work for the Same Company Producing