Identify the factors that determine whether a firm offers a piece-rate or a time-rate compensation system.

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Answer 1

Question

Chapter 11, Problem 1RQ

To determine

Identify the factors that determine whether a firm offers a piece-rate or a time-rate compensation system.

Expert Solution & Answer

Explanation of Solution

Under the time rate pay system, workers depends only on the number of hours the worker spends at the job and has nothing to do with the number of units they produce. That means, workers are given compensation according to the number of hours worked by them. Hence, the number of working hours is taken into the account while determine the compensation in time rate system. The firms will choose a time rate pay system, if it is cheap to monitor the working hours of the workers.

On the other hand, a piece rate pay system compensates the worker according to some measure of worker’s output. That means, the workers are given compensation according to the number of units of output produced by them. The produced output by the workers is taken into the account while determining the compensation. The firms will choose a piece rate pay system, if it is cheap to monitor the output of the workers.

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Answer 2

Question

Chapter 11, Problem 1RQ

To determine

Identify the factors that determine whether a firm offers a piece-rate or a time-rate compensation system.

Expert Solution & Answer

Explanation of Solution

Under the time rate pay system, workers depends only on the number of hours the worker spends at the job and has nothing to do with the number of units they produce. That means, workers are given compensation according to the number of hours worked by them. Hence, the number of working hours is taken into the account while determine the compensation in time rate system. The firms will choose a time rate pay system, if it is cheap to monitor the working hours of the workers.

On the other hand, a piece rate pay system compensates the worker according to some measure of worker’s output. That means, the workers are given compensation according to the number of units of output produced by them. The produced output by the workers is taken into the account while determining the compensation. The firms will choose a piece rate pay system, if it is cheap to monitor the output of the workers.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 11, Problem 1RQ

To determine

Identify the factors that determine whether a firm offers a piece-rate or a time-rate compensation system.

Expert Solution & Answer

Explanation of Solution

Under the time rate pay system, workers depends only on the number of hours the worker spends at the job and has nothing to do with the number of units they produce. That means, workers are given compensation according to the number of hours worked by them. Hence, the number of working hours is taken into the account while determine the compensation in time rate system. The firms will choose a time rate pay system, if it is cheap to monitor the working hours of the workers.

On the other hand, a piece rate pay system compensates the worker according to some measure of worker’s output. That means, the workers are given compensation according to the number of units of output produced by them. The produced output by the workers is taken into the account while determining the compensation. The firms will choose a piece rate pay system, if it is cheap to monitor the output of the workers.

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Answer 4

Question

Chapter 11, Problem 1RQ

To determine

Identify the factors that determine whether a firm offers a piece-rate or a time-rate compensation system.

Expert Solution & Answer

Explanation of Solution

Under the time rate pay system, workers depends only on the number of hours the worker spends at the job and has nothing to do with the number of units they produce. That means, workers are given compensation according to the number of hours worked by them. Hence, the number of working hours is taken into the account while determine the compensation in time rate system. The firms will choose a time rate pay system, if it is cheap to monitor the working hours of the workers.

On the other hand, a piece rate pay system compensates the worker according to some measure of worker’s output. That means, the workers are given compensation according to the number of units of output produced by them. The produced output by the workers is taken into the account while determining the compensation. The firms will choose a piece rate pay system, if it is cheap to monitor the output of the workers.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 11, Problem 1RQ

To determine

Identify the factors that determine whether a firm offers a piece-rate or a time-rate compensation system.

Expert Solution & Answer

Explanation of Solution

Under the time rate pay system, workers depends only on the number of hours the worker spends at the job and has nothing to do with the number of units they produce. That means, workers are given compensation according to the number of hours worked by them. Hence, the number of working hours is taken into the account while determine the compensation in time rate system. The firms will choose a time rate pay system, if it is cheap to monitor the working hours of the workers.

On the other hand, a piece rate pay system compensates the worker according to some measure of worker’s output. That means, the workers are given compensation according to the number of units of output produced by them. The produced output by the workers is taken into the account while determining the compensation. The firms will choose a piece rate pay system, if it is cheap to monitor the output of the workers.

Answer 6

Chapter 11, Problem 1RQ

To determine

Identify the factors that determine whether a firm offers a piece-rate or a time-rate compensation system.

Expert Solution & Answer

Explanation of Solution

Under the time rate pay system, workers depends only on the number of hours the worker spends at the job and has nothing to do with the number of units they produce. That means, workers are given compensation according to the number of hours worked by them. Hence, the number of working hours is taken into the account while determine the compensation in time rate system. The firms will choose a time rate pay system, if it is cheap to monitor the working hours of the workers.

On the other hand, a piece rate pay system compensates the worker according to some measure of worker’s output. That means, the workers are given compensation according to the number of units of output produced by them. The produced output by the workers is taken into the account while determining the compensation. The firms will choose a piece rate pay system, if it is cheap to monitor the output of the workers.

Answer 7

Chapter 11, Problem 1RQ

To determine

Identify the factors that determine whether a firm offers a piece-rate or a time-rate compensation system.

Answer 8

Expert Solution & Answer

Explanation of Solution

Under the time rate pay system, workers depends only on the number of hours the worker spends at the job and has nothing to do with the number of units they produce. That means, workers are given compensation according to the number of hours worked by them. Hence, the number of working hours is taken into the account while determine the compensation in time rate system. The firms will choose a time rate pay system, if it is cheap to monitor the working hours of the workers.

On the other hand, a piece rate pay system compensates the worker according to some measure of worker’s output. That means, the workers are given compensation according to the number of units of output produced by them. The produced output by the workers is taken into the account while determining the compensation. The firms will choose a piece rate pay system, if it is cheap to monitor the output of the workers.