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Question
According to the technique of scientific management, differential piece wage system, how much more will a worker making 70 units earn compared to a worker making 40 units? Consider the standard output per day is 50 units, and those who make the standard output or more than the standard output get ₹70 per unit, whereas others get ₹55 per unit.
[0.80 marks]
According to the technique of scientific management, differential piece wage system, how much more will a worker making 70 units earn compared to a worker making 40 units? Consider the standard output per day is 50 units, and those who make the standard output or more than the standard output get ₹70 per unit, whereas others get ₹55 per unit.
[0.80 marks]
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Solution
The correct option is A ₹2,700
According to differential piece wage systems, workers should be rewarded based on their efficiency. Workers that produce less than the standard number of pieces are paid wages at a lower rate than the prevailing rate, i.e., the worker is penalised for inefficiency.
Units produced below 50 units = 40*55 = 2,200
Units produced above 50 units = 70*70 = 4,900
The total change in prices include = 2,700
According to differential piece wage systems, workers should be rewarded based on their efficiency. Workers that produce less than the standard number of pieces are paid wages at a lower rate than the prevailing rate, i.e., the worker is penalised for inefficiency.
Units produced below 50 units = 40*55 = 2,200
Units produced above 50 units = 70*70 = 4,900
The total change in prices include = 2,700
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