Ch. 1 Gross Pay

Which of the following statements about graduated commission is true?

• As sales increase, the rate of commission decreases.

• As sales increase, the rate of commission stays the same.

• As sales increase, the rate of commission inncreases.

• The salesperson must reach a quota to be paid any commission.

Which term describes an employee who receives a fixed amount each day?

• tip

• per diem

• hourly

• commission

To calculate an employee's time-and-a-half pay rate

• multiply the regular pay rate by 2.

• divide the regular pay rate by 1.5.

• divide the regular pay rate by 2.

• multiply the regular pay rate by 1.5.

What is another name for simple average?

• estimate

• mean

• best approximation

• median

Which of the following is NOT a step in finding the gross wages for an employee who has worked both regular time and overtime hours?

• Find the employee's average annual income over the past 3 years.

• Find the overtime pay rate or rates.

• Add the regular-time pay and the overtime pay.

• Find the number of regular-time and overtime hours worked.

Another word for tip is

• gift

• perk

• gratuity

• reward

Which method are most companies LEAST likely to use to record the number of hours their employees work?

• Employees pass a magnetic stripe card through a reader.

• Employees insert a time card into a time clock.

• Employees write their hours worked on a time sheet.

• Employees keep track of their hours worked mentally.

Which term best describes the total amount of money that an employee is paid?

• gross pay

• average pay

• commission

• salary

Typically a piece-rate employee is paid only for

• the total number of rejected pieces produced.

• the total number of usable pieces produced.

• the total number of usable pieces produced plus the number of hours worked.

• none of the above

Which type of employee is most likely to earn a base salary plus commission?

• a construction worker

• a waitress

• a salesperson

• a lawyer