ECONOMICS
INCENTIVES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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6%
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4%
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1.25%
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5%
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Detailed explanation-1: -Classification of incentive schemes Differential piece rate. Premium bonus schemes. Group bonus plans. Bonus schemes for indirect workers.
Detailed explanation-2: -An incentive wage plan offers an increased level of compensation when employee performance exceeds a threshold level. These plans are intended to incentivize employees to become more efficient and effective in completing their designated tasks.
Detailed explanation-3: -Its formula is: Bonus= Time saved /Standard time x Time taken x Rate per hour ■ Total Earnings = (Time taken x Rate per hour )+Bonus. Two piece rates are fixed. If the worker does the work within the standard time, he receives the higher piece rate, whereas if he takes longer time he receives the lower piece rate.
Detailed explanation-4: -Total product costs can be determined by adding together the total direct materials and labor costs as well as the total manufacturing overhead costs. To determine the product cost per unit of product, divide this sum by the number of units manufactured in the period covered by those costs.