COST ACCOUNTING
INTRODUCTION TO COST ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Halsey plan
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Rowan Plan
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Taylor’s Differential Piece rate system
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None of these
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Detailed explanation-1: -Taylor’s Differential Piece Rate System Tailor’s plan is based on piece rate method and does not guarantee a minimum time wage. Under this plan, standard output per hour or per day of worker is fixed.
Detailed explanation-2: -In Halsey plan, the time wages are guaranteed even if the output of a worker is below the standard. In case, the worker completes the works in less than the standard time, then he/she will be paid according to the actual time, i.e. time-rate plus the bonus calculated at a specified percentage of the saved time.
Detailed explanation-3: -The Rowan Plan: The Rowan plan is a modification of the Halsey plan. It also guarantees the minimum time wages and does not penalize a slow worker. A standard time is fixed for completion of a job and bonus is paid to a worker on the basis of time saved.