Question 75 of 81
Q.Rectify the underlined portions of the following sentences :
(viii) Time rate system may help in lowering cost due to increased production. (underlined : Time rate system)
ChseodishaCHSE Odisha Plus Two (Class 12) Commerce Board 2024Subjective· 1mImportance★★★★★est
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Start your 14-day free trial to unlock the full solution →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 …
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