A differential piece-rate system pays employees_____.
A) one piece-rate wage for all units produced irrespective of employee productivity or work output
B) one piece-rate wage for units produced up to a standard output and the employee is not paid for units produced over the standard
C) one piece-rate wage for units produced up to a standard output and the employee is compensated through nonmonetary incentives for units produced over the standard
D) one piece-rate wage for units produced up to a standard output and a higher piece-rate wage for units produced over the standard

Question

Quizplus · Accepted Answer

A differential piece-rate system pays employees one piece-rate wage for units produced up to a standard output and a higher piece-rate wage for units produced over the standard. This provides an incentive for employees to work efficiently and produce more units, thereby increasing their pay.

A Differential Piece-Rate System Pays Employees_____