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Give examples to illustrate the difference between time wage and piece wage. - Business Studies

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Question

Give examples to illustrate the difference between time wage and piece wage.

Distinguish Between
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Solution

Basis Time Wage System Piece Wage System
Meaning Wages are paid based on the amount of time worked. Wages are paid based on the number of units produced.
Focus Emphasis is on time spent on the job. Emphasis is on output or quantity of work done.
Wage Calculation Wage = Time worked × Rate per hour/day Wage = Units produced × Rate per unit
Example: A worker is paid ₹ 100 per day. If they work 30 days, they earn ₹ 3,000. A worker is paid ₹ 10 per piece. If they make 300 pieces, they earn ₹ 3,000.
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Chapter 8: Staff Remuneration - EXERCISES [Page 117]

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Goyal Brothers Prakashan Business Studies [English] Class 12 ISC
Chapter 8 Staff Remuneration
EXERCISES | Q II. 2. | Page 117
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