Which of the following best exemplifies a piece-rate compensation scheme?
A)Jose's pay is proportional to the number of wiring harnesses he assembles each day
B)Carla's pay is proportional to the value of her sales at the dress shop each month
C)Stan's pay is proportional to the number of his textbooks sold each year
D)Louise's pay is proportional to the number of hours she works each month

Question

Quizplus · Accepted Answer

Piece-rate compensation is when an employee is paid for each unit they produce or complete. In this case, Jose's pay is directly tied to the number of wiring harnesses he assembles, making it an example of a piece-rate compensation scheme. The other options (B, C, and D) are not based on producing a specific number of units or completing a specific task, and so are not examples of piece-rate compensation.

Which of the Following Best Exemplifies a Piece-Rate Compensation Scheme