State any two advantages of Rowan Plan.

Question 52 of 81

Q. State any two advantages of Rowan Plan.

ChseodishaCHSE Odisha Plus Two (Class 12) Commerce Board 2022Subjective· 2mImportance★★★★★est

64% · 52/81 Questions

🔒 Locked · start free trial →

You're viewing a preview — the full solution, concept, methods & PYQ mapping are locked.

Start your 14-day free trial to unlock the full solution →

Rowan protects the worker's wage rate and shares the time-saving gain fairly.

Under the Rowan premium plan (CHSE Odisha +2 Cost Accounting), bonus = (time saved ÷ standard time) × time taken × rate. Two advantages:

Protection against a loosely-set standard — because the bonus proportion is (time saved ÷ standard time), the worker's extra earning is self-limited; even if the standard is set too generously, the worker cannot earn a disproportionately high rate. This safeguards the employer while still rewarding the worker.
Fair sharing of benefit — the saving in time is shared between the worker (through bonus) and the employer (through reduced overhead per unit), so both gain and efficiency is encouraged. …

Start your 14-day free trial to unlock the full solution →

Same / Similar Concept — real previous-year questions on the same or a closely similar concept, not this exact question.

CBSE 2024Set ANNUAL1 markMCQ
$Q. (i) When time saved is less than 50% of standard time, earning per hour is higher under :$
(a) Halsey plan
(b) Rowan plan
(c) Halsey-Weir plan
(d) Taylor's differential piece rate system
›Reveal solutionSolution
When time saved is less than 50% of standard time, earning per hour is higher under the Rowan plan — option (b).

Compare the two bonus formulae for time saved (S) out of allowed time (A), time taken (T), rate (R):

Halsey bonus = 50% × S × R

Rowan bonus = (S / A) × T × R …
Start your 14-day free trial to see the full solution →
CBSE 2023Set ANNUAL1 mark
$Q. Express each of the following in one word / term :$
(iii) A premium plan where the bonus may vary from 33 1/3 % to 66 2/3 % of the wages of time saved.
›Reveal solutionSolution
One word/term: Rowan Premium Plan.

In the Rowan plan, the bonus is not a fixed percentage (unlike Halsey, which gives a flat 50% of time saved). The premium is:

Bonus = (Time saved ÷ Time allowed) × Time taken × Rate. …
Start your 14-day free trial to see the full solution →
CBSE 2022Set ANNUAL1 markMCQ
$Q. When time saved by a worker is equal to 50% of standard time, bonus under Halsey and Rowan plans are :$
(a) Same
(b) More in Halsey plan than in Rowan plan
(c) More in Rowan plan than in Halsey plan
(d) No relation with Halsey and Rowan plan
›Reveal solutionSolution

When time saved = 50% of standard time, Halsey bonus = Rowan bonus — option (a).

Let standard time = S. If time saved = 50% of S = 0.5S, then time taken = S − 0.5S = 0.5S. Let rate = R.

Plan Bonus formula Value
Halsey 50% × time saved × R = 0.5 × 0.5S × R 0.25 S·R
Rowan (time saved / standard time) × time taken × R = (0.5S/S) × 0.5S × R 0.25 S·R
…

Start your 14-day free trial to see the full solution →
CBSE 2022Set ANNUAL1 markMCQ
$Q. If a worker cannot save 50% or more than 50% of time saved, the more beneficial plan for him, is :$
(a) Halsey Premium plan
(b) Rowan Premium plan
(c) Halsey Weir Premium plan
(d) Both Halsey and Rowan plan
›Reveal solutionSolution
If a worker saves less than 50% of standard time, Rowan pays more bonus than Halsey — option (b).

In +2 Class-12 Cost Accounting (CHSE Odisha), comparing the two plans:

Rowan bonus = (time saved / standard time) × time taken × rate.

Halsey bonus = 50% × time saved × rate. …
Start your 14-day free trial to see the full solution →
CBSE 2022Set ANNUAL1 markMCQ
$Q. The standard time and actual time of a worker are 8 hours and 6 hours respectively. The hourly rate is ₹10 per hour. Then the difference of bonus under Halsey plan and Rowan plan, is :$
(a) ₹ 5
(b) ₹ 10
(c) ₹ 15
(d) ₹ 2.50
›Reveal solutionSolution

Halsey bonus = ₹10, Rowan bonus = ₹15, difference = ₹5 — option (a).

Given: standard time = 8 h, actual time = 6 h, rate = ₹10/h, so time saved = 8 − 6 = 2 h.

Plan Bonus formula Working Bonus
Halsey 50% × time saved × rate 0.5 × 2 × 10 ₹10

Start your 14-day free trial to see the full solution →
CBSE 2019Set ANNUAL1 markMCQ
$Q. The formula for calculating bonus under Rowan Plan is$
(a) T x R + 50% (S - T) R
(b) 30% (S - T) x R
(c) (S - T)/S x R
(d) (S - T)/S x T x R
›Reveal solutionSolution
The Rowan bonus formula is option (d): (S − T)/S × T × R.

In the Rowan premium plan (S = standard/time allowed, T = time taken, R = rate per hour):

Time saved = (S − T)

Bonus = (Time saved ÷ Time allowed) × Time taken × Rate = (S − T)/S × T × R

Total earnings = (T × R) + bonus. …
Start your 14-day free trial to see the full solution →

Plan	Bonus formula	Value
Halsey	50% × time saved × R = 0.5 × 0.5S × R	0.25 S·R
Rowan	(time saved / standard time) × time taken × R = (0.5S/S) × 0.5S × R	0.25 S·R
…

Plan	Bonus formula	Working	Bonus
Halsey	50% × time saved × rate	0.5 × 2 × 10	₹10

←Previous questionQ37 — Who are outworkers ?→Next questionQ39 — Mention any three causes of idle time.

Q.State any two advantages of Rowan Plan.

Concept understanding — Rowan Premium Plan

Q.State any two advantages of Rowan Plan.

🎓Unlock everything free for 14 days

Unlock everything free for 14 days