Answer:
A. is paid by firms who can't directly monitor the work effort of their employees
Explanation:
The efficiency wage refers to a wage that is greater than the equilibrium wage which firms pay to employee voluntarily in order to bring about higher productivity and profits.
The efficiency wage is usually paid in order to avoid "shirking" (screwing around) when it is not possible for firms to directly monitor the work effort of their employees.
Screwing around implies wasting time by enganging in unproductive activity.
Therefore, the theory of effiiciency wage predicts that amployees are motivated to harder ans smarter when they are paid an efficiency wage when it is not possible for firms to directly monitor the work efforts of the employees.
Answer:
Cash budget.
Explanation:
A company's expected receipts from sales and planned disbursements to pay bills is commonly called a cash budget.
A cash budget can be defined as a budget consisting of expected cash receipts or estimation of the cash flows and planned disbursements to pay bills, for a business over a specific period of time.
In Financial accounting, a cash budget is typically used to determine whether a business firm has sufficient funds for its smooth operations and evaluate if cash are being spent judiciously or productively. A cash budget comprises of financial items such as costs incurred or expenses paid, revenues generated, payments and loan receipts collected.
Answer:
Work in progress inventory A/c
Explanation:
The journal entry to record the overhead cost applied is shown below:
Work in progress inventory A/c Dr XXXXX
To Factory overhead A/c XXXXX
(Being applied overhead is recorded)
For recording the applied overhead cost, we debited the work in progress inventory and credited the factory overhead account so that the correct posting can be done with the correct item
Answer:
d.transferred to Cost of Goods Sold
Explanation:
Given that
Balance in the factory overhead is small
So, the balance is normally transferred to the cost of good sold as the factory overhead consists of the indirect cost which are required to producing a product while the cost of goods sold is the total cost which is incurred to manufacture the cost. It involves direct cost as well as the indirect cost
