Hourly Wage Rate | Salary | Piece-rate and Commision | Fringe Benefits | Bonus Schemes and Profit Sharing |
---|---|---|---|---|
Hourly Wage Rate
employees are paid a fixed amount per hour worked
|
Salary
employees are paid a fixed amount per year
|
Piece-rate
pay is based on the number of outlets employees produce
|
Fringe Benefits
an alternative to cash payments; includes discounts
|
Profit Sharing
an additional payment to all staff based on the profits of the business
|
$200
An employee is paid $5 and hour. They work 40 hours. How much will they get paid?
|
managers, supervisors, or professional staff
This method is best for employees whose work or effort is not directly linked to production. An example of one of these positions is....
|
Commission
Pay is based on the values of sales made by staff
|
B & C
An example of fringe benefits are...
a. bonuses b. discounts on products c. health insurance d. paycheck |
Bonus Scheme
a method of performance-related pay; employees receive an additional payment for achieving a target set by managers
|
$144
An employee is paid $12 an hour. They work 12 hours. How much will they get paid?
|
True
When paid by the salary method, employees will not receive more pay for working longer hours.
True or False |
$10
An employee is paid $0.10 for every unit they produce. If an employee produces 100 units, how much will they get paid?
|
True
Fringe benefits are linked to status not performance.
True or False |
False
With a bonus scheme, if managers set a realistic goal it will not motivate employees.
True or False |
False
When an employee is paid at an hourly wage rate they are paid by how many units they produce.
True or False |
$80,000. With the salary method, production doesn’t matter.
An employee produces 2,000 and gets paid $80,000 a year. If paid by the salary method, how much will he receive?
|
True
Commission is only ever used to reward sales staff.
True or False |
False
Fringe Benefits is getting paid extra for the hours you overwork.
True or false? |
True
The thinking behind profit sharing is that all employees had contributed to the business and, therefore, share in the success. True or False
|
C. Cashier
Which employee gets paid by an hourly wage rate?
a. manufacturing engineer b. lawyer c. cashier. d. technician |
a. teacher
Which employee gets paid by salary?
a. teacher b. stockbroker c. mail clerk d. car salesman |
a. Piece-rate b. Commission
Which employee gets paid by commission and which gets paid by piece-rate?
a. truck driver b. artist |
A. Manager
Which employee is more likely to have fringe benefits such as a company car?
a. manager b. full-time employee |
B
Which employee is most likely to be in a bonus scheme?
a. supervisor b. employee on a production line |