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# PPT - Piece Rate System B Com Notes | EduRev

## B Com : PPT - Piece Rate System B Com Notes | EduRev

``` Page 1

2. Piece Rate System
? Under this system, the wages are paid to a worker on the
basis of output produced by him without considering the time
taken in performing the work.
? Wages = N * R
where N = no. of unit produced.
R = Rate per unit
? The earning of workers depends on the speed of the work and
his own individual skills and efficiency.
Page 2

2. Piece Rate System
? Under this system, the wages are paid to a worker on the
basis of output produced by him without considering the time
taken in performing the work.
? Wages = N * R
where N = no. of unit produced.
R = Rate per unit
? The earning of workers depends on the speed of the work and
his own individual skills and efficiency.
? Works as an inducer for workers to produce more.
? Here reward is related to efforts.
? This method is fair to all as inefficient workers are panelized
and efficient worker are rewarded.
Page 3

2. Piece Rate System
? Under this system, the wages are paid to a worker on the
basis of output produced by him without considering the time
taken in performing the work.
? Wages = N * R
where N = no. of unit produced.
R = Rate per unit
? The earning of workers depends on the speed of the work and
his own individual skills and efficiency.
? Works as an inducer for workers to produce more.
? Here reward is related to efforts.
? This method is fair to all as inefficient workers are panelized
and efficient worker are rewarded.
? In an effort to produce more and earn more workers may
exert themselves to fatigue.
? Workers feels insecure in this system because they will lose
wages for the period of absence.
? This system requires an up-to-date records of output produce
by each workers which increase the clerical works.
```
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## Cost Accounting

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