Omar owns a factory of manufacturing shoes in Gala area. He aims to increase the profitability of the business, which can be done by encouraging his employees to be more productive. From that perspective Omar applies various methods for payment of remuneration and introduced different individual incentive plans. As an owner of the business, he knows that employees effort needs to be recognized and reworded, as result, a discount voucher of 20% of the employee purchases from Lulu hypermarket is given to each employee by the end of every month.

In his company the workers are getting paid based on time spent in doing the job and based on the amount of work completed. In order to smooth the shoes manufacturing process, team work is highly required and encouraged. Therefore, Omar applied two different group incentive plans, to reword and boost team work practice. First plan is focusing on given fifty percent of savings in labour cost will be distributed among the team members. Second plan is focusing on the saving in actual expenditure which is compared with budgeted expenditure.

Omar recorded the following information for the month of April, Normal rate per hour is OMR 12, Normal rate per unit is OMR 5, Standard working hours per day are 8 hours, Standard Output per hour is 20 units.

If Omar is going to consider number of shoes produced by each worker as a base for the remuneration. Which of the following remuneration methods is applied:

a.

Piece Rates with Guaranteed Time Rates

b.

Time Wage System

c.

Piece wage system

d.

Time wage and piece wage systems

Under Gantt task bonus plan, if the employee produces the output below standard. What is the differential piece rate paid:

a.

Time rate plus bonus of 120 percent of time rate

b.

Time rate plus bonus of 10 percent of time rate

c.

Time rate plus bonus of 20 percent of time rate

d.

Time rate with no bonus

Which of the following is not correct under Halsey Premium Plan:

a.

If worker completed the job in more than standard time a normal earning will be given without a bonus

b.

If workers completed the job in more than standard time a bonus will be given beside normal earning

c.

If workers completed the job in less than standard time a bonus will be given beside normal earning

d.

None of the given options

The Remuneration method which combines time wage system and piece rate system is:

a.

Gantts Task Bonus Plan

b.

None of the given options

c.

Taylors Differential Piece Rates System

d.

Merrick Differential Piece Rate System

Bonus Plans were designed to overcome drawback of which of the following methods:

a.

Merrick Differential Piece Rate System

b.

All of the given options

c.

Time Wage System

d.

Gantts Task Bonus Plan

Based on the case given, using Merrick Differential Piece Rate System, who of the following generated high earnings in a day. Muna manufactures 100 units, Khalid 160, Nouf 166 in a day.

a.

Khalid

b.

Nouf

c.

Muna

d.

All of them receive the same payment.