Saturn Systems, an information technology company, determines that most problems handled by employees at its help desk can be resolved within 20 minutes. The company sets 20 minutes as the standard time for resolving a customer problem. If an employee solves a customer's problem in less than 20 minutes, the employee still earns 20 minutes' worth of wages. Which payment method does this scenario illustrate?

A) piecework plan
B) differential plan
C) standard hour plan
D) merit pay
E) performance bonus

Question

Alexis Massie · Accepted Answer

Final Answer : C, Explanation :  The scenario illustrates a standard hour plan, where a standard time is set for completing a task, and employees are paid based on the number of hours worked, regardless of the time taken to complete the task. In this case, the standard time set is 20 minutes, and employees are paid for 20 minutes' worth of wages, whether they solve the problem in less than 20 minutes or take longer.

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