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Which of the following is a demerit of piece wage system of wage payment? - Business Studies

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Question

Which of the following is a demerit of piece wage system of wage payment?

Options

  • Higher overheads

  • Incentive

  • Economy

  • Labour cost control

MCQ
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Solution

Higher overheads

Explanation:

A demerit of the piece wage system is higher overhead because it requires more supervision, quality control, and record-keeping. Managing individual output for pay calculation increases administrative costs.

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Chapter 8: Staff Remuneration - EXERCISES [Page 115]

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Goyal Brothers Prakashan Business Studies [English] Class 12 ISC
Chapter 8 Staff Remuneration
EXERCISES | Q I. A. 4. | Page 115
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