Costing and Taxation · Class 12 Commerce
Ch 1Concept of Labour and Methods of Remuneration – I — Class 12 Costing and Taxation, concept-first.
Before any wage can be computed, or any hour of labour charged to a job, cost accounting must first answer a simple but essential question: how long was each worker present at work? Time Keeping is the function of recording, for every worker, the time of arrival, the time of departure, and hence the total attendance ti…
Key concepts
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Time Keeping and Time Booking
Time Keeping is the recording of each worker's time of arrival and departure — the total attendance time — via methods such as an Attendance Register (manual) or a Time Recording Clock/Dial Time Recorder (mechanical); it…
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Chapter contents
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Time Keeping: Manual and Mechanical Methods
Before any wage can be computed, or any hour of labour charged to a job, cost accounting must first answer a simple but essential question: how long was each worker present at work? Time Keeping is th…
Time Booking, Idle Time and Its Causes
Time Keeping (previous section) tells us only how long a worker was present in the factory. It says nothing about what the worker actually did with that time — which job, product, or process the worke…
Time Rate Wage
Methods of Remuneration are the schemes by which a worker's wage is actually computed from the labour data recorded in Time Keeping and Time Booking.
Straight Piece Wage
Straight Piece Wage (also called the Piece Rate System) pays a worker strictly according to the number of units of output actually produced, at an agreed rate per unit — time taken is irrelevant to th…
Differential Piece Wage Rate: Taylor's and Merrick's Methods
Straight Piece Wage rewards output strictly proportionately — a worker earns exactly the same extra rupee for the 201st unit as for the 1st unit, with nothing to specifically celebrate crossing an eff…
More questions
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- Q1Distinguish between Time Keeping and Time Booking, and state one method commonly used for each.Free
- Q2State any five essential features of a good time-keeping system.Free
- Q3Distinguish between Normal Idle Time and Abnormal Idle Time, giving two examples of each, and state how each is treated in the cost accounts…Free
- Q4As per the time-keeping records, a worker was present in the factory for 48 hours during a week. The job cards (time-booking records) show o…Preview
- Q5State two advantages and two limitations of the Time Rate Wage system.Preview
- Q6A worker is employed on a Time Rate basis at ₹45 per hour and works 208 hours during a month. Compute the worker's wages for the month.Preview
- Q7In what situations is the Time Rate Wage system more suitable than a piece-rate-based system?Preview
- Q8A worker is paid under the Straight Piece Rate system at ₹12.50 per unit. If the worker produces 320 units in a day, compute the worker's wa…Preview
- Q9Two workers, A and B, work in the same department under a Straight Piece Rate of ₹15 per unit. In a day, Worker A produces 180 units and Wor…Preview
- Q10State any three limitations of the Straight Piece Wage system.Preview
- Q11Under Taylor's Differential Piece Rate System, the standard output is fixed at 200 units per day and the Normal Piece Rate is ₹10 per unit.…Preview
- Q12Under Merrick's Differential Piece Rate Method, the standard output is fixed at 200 units per day and the Normal Piece Rate is ₹10 per unit.…Preview
- Q13A worker's output for a day is 220 units. The standard output is 200 units per day, and the Normal Piece Rate is ₹10 per unit. Compute the w…Preview
- Q14State any three limitations of Taylor's Differential Piece Rate System, and briefly explain why Merrick's Method is considered a gentler alt…Preview
- Q15Distinguish between Taylor's Differential Piece Rate System and Merrick's Differential Piece Rate Method.Preview