Which of the following factors will favor paying compensation by time rather than by output?
A) Output is easily measured and monitored.
B) The production of output requires the cooperation of many workers across the firm.
C) The industry's output is not affected by national economic conditions.
D) Workers are risk-seeking rather than risk-averse.

Question

Quizplus · Accepted Answer

If the production of output requires the cooperation of many workers across the firm, it may be difficult to accurately measure individual contributions to output. Therefore, paying compensation by time may be more appropriate to ensure fairness among workers.

Which of the Following Factors Will Favor Paying Compensation by Time