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What is piece rate compensation?

Back

A payment system where workers are paid based on the quantity of work they complete.

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What is a fixed piece rate?

Back

Workers receive a set amount per piece produced, regardless of the total output.

Front

Provide an example of fixed piece rate compensation.

Back

If the fixed rate is $1.20 per piece, a worker producing 100 pieces earns $120.

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What is differential piece rate?

Back

Payment increases as production levels rise, rewarding higher output with higher rates.

Front

Provide an example of differential piece rate compensation.

Back

The first 100 pieces may be paid at $1.00 each, and any additional pieces at $1.50 each.

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How do you calculate total earnings in piece rate compensation?

Back

Total Earnings = Quantity Produced × Rate.

Front

If a worker produces 360 pieces at a fixed rate of $1.20, what are their total earnings?

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Total Earnings = 360 pieces × $1.20 = $432.

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What are income types?

Back

Various forms of earnings individuals or entities can receive, distinct from traditional wages or salaries.

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What is commission income?

Back

Earnings based on sales performance, commonly in sales roles.

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What is rental income?

Back

Revenue generated from leasing out properties.