ENTREPRENEURSHIP

Detailed explanation-1: -Piece rate system is the method of remunerating the workers according to the number of unit produced or job completed. It is also known as payment by result or output. Piece rate system pays wages at a fixed piece rate for each unit of output produced.

Detailed explanation-2: -Piece rate refers to a wage determination system in which the workers get paid by result like each unit of production at a fixed rate.

Detailed explanation-3: -Example Calculation: An employee works 50 hours in a week at $15 an hour. At their normal rate, this would result in a total of $750 in piece-rate compensation. However, because a work-week maximum would be 40 hours, there would be 10 hours of overtime, and only the first 40 hours can be paid at the standard rate.

Detailed explanation-4: -Piecework is a form of work in which employees are paid not on the basis of working time, but on the basis of their work performance. The amount of the salary is calculated from the number of pieces produced and the agreed wage rate.