Time-rate wages do NOT incentivise:
AAttendance
BPunctuality
CHigher individual output
DSticking to working hours
Answer & Solution
Correct answer: C. Higher individual output
1. Time-rate wages pay a fixed rate per hour or per day regardless of output.
2. Since pay is independent of units produced, there is no extra reward for higher output.
3. Time-rate does encourage attendance and timely arrival to earn the full daily wage.
4. Hence it specifically does not incentivise higher individual output.
_Source: ICAI BoS Inter Paper 3, Ch 3 "Employee Cost", §3.8 ¶3_
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