Quiz about Ch. 1 Gross Pay

Question 1

Which of the following statements about graduated commission is true?

Accepted Answer

As sales increase, the rate of commission inncreases.

Answer

As sales increase, the rate of commission decreases.

Answer

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

Answer

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

Question 2

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

Accepted Answer

per diem

Answer

tip

Answer

hourly

Answer

commission

Question 3

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

Accepted Answer

multiply the regular pay rate by 1.5.

Answer

multiply the regular pay rate by 2.

Answer

divide the regular pay rate by 1.5.

Answer

divide the regular pay rate by 2.

Question 4

What is another name for simple average?

Accepted Answer

mean

Answer

estimate

Answer

best approximation

Answer

median

Question 5

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?

Accepted Answer

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

Answer

Find the overtime pay rate or rates.

Answer

Add the regular-time pay and the overtime pay.

Answer

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

Question 6

Another word for tip is

Accepted Answer

gratuity

Answer

gift

Answer

perk

Answer

reward

Question 7

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

Accepted Answer

Employees keep track of their hours worked mentally.

Answer

Employees pass a magnetic stripe card through a reader.

Answer

Employees insert a time card into a time clock.

Answer

Employees write their hours worked on a time sheet.

Question 8

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

Accepted Answer

gross pay

Answer

average pay

Answer

commission

Answer

salary

Question 9

Typically a piece-rate employee is paid only for

Accepted Answer

the total number of usable pieces produced.

Answer

the total number of rejected pieces produced.

Answer

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

Answer

none of the above

Question 10

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

Accepted Answer

a salesperson

Answer

a construction worker

Answer

a waitress

Answer

a lawyer

Question 11

To calculate the annual gross pay for an employee who receives a monthly salary

Accepted Answer

multiply the monthly salary by 12.

Answer

divide the monthly salary by 12.

Answer

multiply the monthly salary by 6.

Answer

none of the above

Question 12

Which type of employee is most likely to earn an hourly wage plus tips?

Accepted Answer

a waiter

Answer

a professional athlete

Answer

a computer salesperson

Answer

a teacher

Question 13

Salary is a fixed amount of money paid to an employee for each time period worked, such as a day, week, month, or year.

Accepted Answer

True

Answer

False

Question 14

Commission is what a salesperson earns that may be a fixed amount for each item sold or a percent of the dollar value of sales.

Accepted Answer

True

Answer

False

Question 15

Overtime pay that is figured at one-and-a-half times the regular rate is called double time.

Accepted Answer

False

Answer

True

Question 16

Carl is paid an hourly rate of $12.65. What is his weekly gross pay if he works 25 hours per week?

Accepted Answer

$316.25

Answer

$506

Answer

$253

Answer

none of the above

Question 17

If an employee is paid an hourly rate of $15.10 for regular-time work, what are the employee's time-and-a-half rate for overtime work per hour?

Accepted Answer

$22.65

Answer

$30.20

Answer

$17.10

Answer

none of the above

Question 18

Marilyn earns a monthly salary of $3,400. What are her yearly earnings?

Accepted Answer

$40,800

Answer

$20,400

Answer

$30,600

Answer

none of the above

Question 19

William is paid a straight commission of 7.25% on all sales. Last week his sales totaled $10,300. What were his commission earnings last week?

Accepted Answer

$746.75

Answer

$749.00

Answer

$11,046.75

Answer

none of the above

Question 20

Maria earned $5,250, $4,800, $3,990, and $5,120 from her home business during the last four months. What was her average monthly income during this period?

Accepted Answer

$4,790

Answer

$4,787.50

Answer

$4,750

Answer

none of the above

Question 21

What tip would a waiter receive if a customer adds a 20% tip to a meal that costs $42.18?

Accepted Answer

$8.44

Answer

$8.42

Answer

$9.00

Answer

none of the above

Question 22

Donald earns a commission of 3.7% on all sales above his weekly quota of $12,500. His sales last week totaled $32,480. What commission amount did Donald earn last week?

Accepted Answer

$739.26

Answer

$839.26

Answer

$1,739.26

Answer

none of the above

Question 23

Employees at Pete's Packaging earn time-and-a-half pay for all hours worked beyond 40 hours. Last week an employee worked a total of 44.5 hours. How much overtime pay did the employee earn if his regular pay rate is $12.28 per hour?

Accepted Answer

$82.89

Answer

$110.52

Answer

$55.26

Answer

none of the above

Question 24

Michelle works at a beauty salon. Last month she received an average tip of $9 from her 88 clients.

Accepted Answer

$792

Answer

$72

Answer

$81

Answer

none of the above

Question 25

The average annual income for five salespeople last year was $54,200. Four of the salespeople earned these annual amounts: $58,125, $53,190, $48,975, and $56,000. What was the annual income of the fifth salesperson?

Accepted Answer

$54,710

Answer

$54,200

Answer

$56,700

Answer

none of the above

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