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

Question

Quizplus · Accepted Answer

Hourly rates are preferred when it is difficult to measure output, such as in jobs that involve a lot of variety in the work done or when the output is not easy to quantify. Piece rates are preferred when it is easier to measure output, such as in factory work where the number of units produced can be easily counted.

When Are Hourly Rates Preferred to Piece Rates