Piece rate earnings are often unstable because:
APay ignores units produced
BOutput and demand fluctuate
CPay is made once a year
DRates are fixed by statute
Answer & Solution
Correct answer: B. Output and demand fluctuate
Earnings move with productivity and with demand for the product, so income is not steady.
Keep practising Employee Cost
Browse all Employee Cost questions for CA Inter, or explore more Cost and Management Accounting topics.
Related questions
An Improshare standard identifies the expected number of what?Profit sharing payments often depend on the company's:Improshare stands for:A Scanlon plan incentive uses the ratio of labour cost to:Gainsharing differs from profit sharing as it measures:Gainsharing returns what to employees?Perks are benefits that are mostly:Exchanging cash wages for another benefit is called salary: