Piece rate system - labour remuneration, Cost Accounting

Assignment Help:

Piece Rate System - Labour Remuneration

However an employee is paid a fixed amount for all units produced irrespective of time in use; the wages payable are computed like follows:

Wages = Number of units produced X Rate per unit

During this case, there is a flat rate per unit. Conversely, a company may modify this and apply the Taylor's differential price rate system whereas three piece rates are set for all jobs: the low, common higher piece rate. Conversely the low piece rate is applicable whereas a worker is not capable to achieve the standard or common output and the highest piece rate is for such above standard. This may lead to high wage differential in that company and consequently demonization if it does not guarantee minimum wages on time basis.  For this purpose, the differential price rate systems and also many variations of the piece rate system have a minimum or guaranteed pay.


Related Discussions:- Piece rate system - labour remuneration

Balance sheet, The following information is provided to you concerning Lydi...

The following information is provided to you concerning Lydia Ltd as at 30 June 2012.  Assume a company tax rate of 30%. (i) The balance of rent received in advance in the balan

Goal congruence - behavioural aspects of standards, Goal Congruence - Behav...

Goal Congruence - Behavioural Aspects of Standards A perfect variance analysis and standard costing system must enhance goal congruence between as: i. The goal of individua

Process costing procedure, Process Costing Procedure 1. The production...

Process Costing Procedure 1. The production factory is divided into a number of methods. 2. An account is maintained and opened for every process. 3. Every process accou

Purchase cost and ordering cost, Ordering cost is incurred whenever the ...

Ordering cost is incurred whenever the inventory is replenished. It includes costs associated with the processing and chasing of the purchase order transportation, inspec

Estimated net income, What will be the cost of Well Water after considering...

What will be the cost of Well Water after considering the financing surrounding the purchase (savings on the loan), Well Water's (net) working capital situation, and the additional

Explanation of the fixed cost line, A fixed cost is a cost which can't be e...

A fixed cost is a cost which can't be easily identified or related to a cost per unit or activity of any kind for example a cost which remains constant when production of a service

Target income calculations, Target Income Calculations Breaking even is...

Target Income Calculations Breaking even is not the bad thing, but surely not a satisfactory outcome for most businesses. In its place, a manager might be more interested in le

How much should the selling price be per unit, Pritchard Company manufactur...

Pritchard Company manufactures a product that has a variable cost of $30 per unit. Fixed costs total $1,500,000, allocated on the basis of the number of units produced. Selling pri

Labour Costs and Overhead Costs, Labour Costs and Overhead costs Labo...

Labour Costs and Overhead costs Labour Costs Labour costs can be indirect or direct labour costs. Direct labour cost refers to wages paid to workers who such are directly

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd