Thuy works in a factory sewing children’s clothes. In addition to an h

QUESTION

Thuy works in a factory sewing children’s clothes. In addition to an hourly salary of $6.75, she earns 14 cents for every clothing item she finishes that passes quality inspection. What is Thuy’s additional incentive structure called?

A) bonus
B) gainshare
C) commission
D) piece rate
E) profit share

ANSWER

Answer: D
Explanation: D) Under a piece rate incentive structure, an employee is paid according to how much output he or she produces. This is an example of pay for performance incentives.