Costing - Study Mode
[#501] Piece workers are paid on the basis of ________.
Correct Answer
(B) output produced
Explanation
Solution: Piece workers are paid on the basis of output produced. 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.
[#502] Time wages are paid on the basis of ________.
Correct Answer
(A) actual time
Explanation
Solution: Time wages are paid on the basis of actual time. In this system of wage payment, the workers are paid the wages on the basis of time as, per hour, per day, per week, per fortnight or per month etc. This system does not consider the production of the employees during this time.
[#503] Differential piece wages means _______.
Correct Answer
(A) different wages for different level of performance
Explanation
Solution: Differential piece wages means different wages for different level of performance. A differential piece-rate system is a method of wage payment in which after tests have set a standard time for any task assigned the worker gets a high piece rate for completing the job within the allotted time and lower piece rate for completing the job beyond the allotted time.
[#504] Those cost which is incurred to prevent the labour turnover __________.
Correct Answer
(C) preventive cost
Explanation
Solution: Those cost which is incurred to prevent the labour turnover is known as preventive cost. These are costs which are incurred to prevent excessive labour turnover. The aim of these costs is to keep the workers satisfied so that they may not leave the factory.
[#505] In production, variables such as level of activity or volume of company activity are known as
Correct Answer
(A) cost drivers
Explanation
Solution: In production, variables such as level of activity or volume of company activity are known as cost drivers. A cost driver is the direct cause of a cost, and its effect is on the total cost incurred.