Labour Cost Quiz

Which of the following statements is true regarding the use of direct labour cost?

• It is used to cover office expenses.

• It is used to convert raw materials into finished goods.

• It is used for selling and distribution overhead.

• It is not used in the production process.

Which of the following best describes the meaning of labour turnover in an organization?

• It implies the promotion of employees.

• It implies the departure and replacement of labour.

• It implies the increase in employee benefits.

• It implies the reduction of working hours.

What does idle time represent in the context of workers paid on a time basis?

• Time lost by workers who are paid on time basis

• Time spent on productive work

• Time spent on training

• Time spent on overtime work

Which of the following is a reason for using the Time Rate System?

• The worker is a manager

• The worker is paid by the number of items produced

• The work depends on the output of other workers

• All of the above

What is NOT considered in the Time Rate System?

• The time worked

• The quantity of work done

• The hourly wage rate

• The number of hours worked

Which of the following best describes how a worker is rewarded under the Halsey Plan?

• By receiving a guaranteed base rate and a bonus for exceeding standard performance

• By receiving only a fixed salary

• By receiving a bonus for every unit produced

• By receiving a share of company profits

Calculate piece rate if Number of units produced in 1 hour are 200 and time rate per hour is Rs. 20.

• 0.02

• 0.20

• 0.10

• 0.01

Calculate Bonus as per Halsey Plan if time saved is 15 hours and time rate per hour is Rs. 5.

• Rs. 57.3

• Rs. 37.5

• Rs. 73.5

• Rs. 55.7

In Taylor's Differential Piece Rate Plan, if the actual production is equal to or above the standard then the wages will be paid at _____ of the piece rate.

• 80%

• 100%

• 120%

• 150%

In Halsey-Weir Plan, ____ of Time Saved is used for the calculation of bonus.

• 50%

• 33.33%

• 75%

• 25%