Q AT 690 Chapter 16 Notes – Compensation Plans (47pts) 1. Controlling _____________ is an essential skill for the ____________ {2pts} 2 The expenses that are within the manager’s control are ____________ expenses. 3. The two most common methods for establishing customer labor charges are _________ __________ and ______________ systems. {2pts} 4. In the __________ ___________ ___________ all customers are charged a predetermined number of hours for a repair 5. How many years ago was the flat-rate system established and why did they do it? {2pts} 6. A _________ ___________ ___________ is a comprehensive listing of labor times for performing common repairs. 7. What are the two different sources of flat rate manuals? {2pts} a. b. 8. There are two ways to establish times published in flat rate manuals. What are they? {2pts} a. b. 9. How are these two methods different? 10. Are either one of these systems perfect? 11. Although not as common as the flat-rate system the other method used for developing labor charges is the __________ ___________. 12. When and why is this pricing system used? {2pts} 13. Is this system used for competitive pricing? 14. In a shop using ____________ ____________ pricing the hourly rate charged for a repair depends on the type of repair and the difficulty of that repair. 15. What type of services would be priced at the lowest hourly rate under this pricing system? {2pts} 16. When would the shop using this pricing system charge a much higher price for repairs? {2pts} 17. How are technicians usually categorized? {2pts} 18. Which group of techs are considered able to fix anything are highest in demand? 19. Which group of techs are able to fix most problems across a wide range of systems and are the largest group? 20. Which group of techs are known for maintenance and light repair? 21. As a manager it is important to know that as the skill level of a technician drops or rises so does the ___________ ____ ___________. 22. A managers job is to ___________ costs while maintaining high ____________ and _____________. {3pts} 23. Does the method used to calculate customer labor costs have to be the same as the method used to pay the technician? 24. What are four methods to paying technicians? {4pts} a. b. c, d. 25. Explain how each method works and name the benefits and drawbacks both to the employee and employer of each of the systems. {5pts} 26. How are other service employees usually paid? (service consultant/service manager) 27. What are fringe benefits? {2pts} 28. What is the average percentage of benefits of the employee’s hourly pay?