Q.Explain the meaning of time rate and piece rate method of wage payment.

Piece rate suits work whose quantity can be precisely measured — option (c).

Under the piece-rate system, wages = number of units produced × rate per unit. For this to be fair and workable, each worker's output must be countable and measurable precisely. Hence it is most suitable where the quantity of work done can be measured accurately and quality control is manageable.

• (a) difficult to measure output → time rate is better, not piece rate. …

Correct term: Piece rate system (not Time rate system) lowers cost through increased production.

Under the time-rate system, wages depend only on hours attended, so there is no built-in incentive to produce more and fixed overhead per unit may stay high. Under the PIECE-RATE system, wages rise with output, which motivates workers to produce more; the larger output spreads fixed costs over more units …

40 total hours at ₹8 per hour = ₹320 — option (c).

This CHSE Odisha +2 Cost Accounting numerical uses the time-rate (time wage) method: wages = total hours worked × rate per hour.

Piece rate pays on actual output produced — option (b).

The term is standard time (also called time allowed).

Standard time, or the time allowed, is the pre-determined time that a worker of average skill should take to complete a specified job or quantity of output under standard conditions. It is the benchmark against which actual time taken …

The item that is not a monetary wage is option (d) Recreational facilities.

Monetary wages are paid in money or have a direct money value accruing to the worker — basic wage, dearness allowance, and the employer's provident-fund contribution (a money benefit credited for the worker) all qualify. Recreational facilities are a benefit pr …