When Are Hourly Rates Preferred to Piece Rates

question 144

Multiple Choice

When are hourly rates preferred to piece rates?

• A) when it is difficult to measure output
• B) when employees demand it
• C) when wage equality isn't very important
• D) when one person is much better than the rest

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Definitions:

Operating Costs

Expenses associated with the day-to-day functioning of a business, including costs for rent, utilities, payroll, and raw materials.

Discretionary Income

The portion of a person's income remaining for investment, savings, or expenditures after deducting taxes and essential living costs such as housing and food.

Personal Income

Refers to the total earnings received by individuals, including wages, salaries, bonuses, and income from investments.

Discretionary Income

the portion of an individual's income available for spending after the essentials (like food, shelter, and clothing) have been taken care of.