An Automatic Increase in a Wage Rate Found in Some

question 94

Multiple Choice

An automatic increase in a wage rate found in some contracts is known as a

• A) change of labor agreement.
• B) cost of labor arrangement.
• C) cost of living adjustment.
• D) charge for living amendment.

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Definitions:

Differential Piecework Rate

A compensation system where employees are paid based on the amount of work they produce, but the rate of pay increases after a certain quantity of work is completed.

Average Production Volume

The typical quantity of goods produced over a specific time period, calculated to understand production efficiency and set benchmarks.

Standard Hour Incentive Plan

A compensation system that pays employees extra for efficiency, based on standard times established for completing their work.

Performance Appraisals

The regular review and evaluation of an employee's job performance and overall contribution to an organization.