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mote1985 [20]
3 years ago
13

What are the disadvantages for an employer of paying employees piece rate or commission

Business
2 answers:
DIA [1.3K]3 years ago
7 0

Answer:

Disadvantages of Piece-Rate Pay:

Ruined Creation  

It's for all intents and purposes difficult to anticipate how much item can be made inside a set time under this framework, in light of the fact that the framework doesn't effectively fit directing and empowering a creation line.  

Wiped out or Harmed Laborers  

Working for piece-rate pay implies that laborers may come to work when they are sick, in this manner taking a chance with the strength of their colleagues. This could close down or truly diminish creation yield. Also, contingent upon the materials and hardware, if laborers are working too rapidly trying to create more, laborers might harm themselves, which could open up the organization to risk.  

Diminished Quality

At the point when the emphasis is on amount, the yield the quality may endure. Such a framework requires devoted workers who are resolved to gain proficiency with their specialty altogether and afterward to expand the yield. Representatives are human, be that as it may, and it very well may be hard to work at a fast pace over a long span. This can imply that representatives may keep on working at a quick pace yet that creation may deliver things of decreased quality.

Disadvantages of Commission Pay:

Turns out to be excessively centered around gaining commission  

Profoundly energetic sales reps can gain a ton of cash, however at times, they can turn out to be excessively centered around the commission. They will neglect to completely clarify their items or administrations to potential clients. Rather than producing a deal, they can demoralize individuals from purchasing their contributions. The equivalent goes for excessively forceful deals techniques wherein new clients might be killed by a lot of hard selling and other high-pressure strategies.  

Influences group elements  

Commission-based compensation can likewise influence the elements of a group. Working with associates who procure much more than you do can trigger negative feelings. For example: jealousy and disdain.

Explanation:

A piece-rate pay system implies that the specialist is paid per unit of creation. Regardless of whether the "unit of creation" is an earth pot or a piece of composing, an individual is paid by singular yield, regardless of to what extent it takes. In spite of the fact that from the outset working by piece-rate may appear to be simpler, the piece-rate pay system has focal points and hindrances that you ought to consider.

Commission alludes to the pay paid to a representative in the wake of finishing an assignment, which is, frequently, selling a specific number of items or administrations. Organizations differ in the manner they set and pay commissions. One way is the level commission wherein the worker gets a rate or rate on any deal that the person makes. The other way is inclined commission wherein the rate increments when the representative produces more deals or arrives at higher targets.

vlada-n [284]3 years ago
5 0

Reduced Quality, Hindered Production, and Workers May Come To Work When Sick

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When the price of good A is $50, the quantity demanded of good A is 500 units. When the price of good A rises to $70, the quanti
olga55 [171]

Answer: The price elasticity of demand for good A is 0.67, and an increase in price will result in a increase in total revenue for good A

Explanation:

The following can be deduced form the question:

P1 = $50

P2 = $70

Q1 = 500 units

Q2 = 400 units

Percentage change in quantity = [Q2 - Q1 / (Q2 + Q1) ÷ 2 ] × 100

Percentage change in price = [P2 - P1 / (P2 + P1) ÷ 2 ] × 100

% change in quantity = (400 - 500)/(400 + 500)/2 × 100

= -100/450 × 100

= -22.22%

% change on price = (70 - 50)/(70 + 50)/2 × 100

= 20/60 × 100

= 33

Price elasticity of demand = % change in quantity / % change on price

= -22.22 / 33

= -0.67

This means that a 1% change in price will lead to a 0.67% change in quantity demanded. As there was a price change, there'll be a little change in quantity demanded because demand is inelastic. Thereby, he increase in price will lead to an increase in the total revenue.

Therefore, the price elasticity of demand for good A is 0.67, and an increase in price will result in an increase in total revenue for good A

7 0
3 years ago
The December 31, 2021, unadjusted trial balance for Demon Deacons Corporation is presented below.
Arlecino [84]

Answer:

Date   Accounts Titles & Explanation  Debit  Credit

Dec 31    Rent Expense                          $2,040

               ($6,120 *2/6)

                      Prepaid Rent                       $2,040

Dec 31     Deferred Revenue                 $525

                      Service Revenue                           $525

Dec 31    Salaries Expense                     $700

                      Salaries Payable                           $700

Dec 31     Supplies Expense                  $2,390

                ($3,100 - $710)

                      Supplies                                       $2,390

       

              Demon Deacons Corporation

                 Adjusted Trial balance

                  December 31, 2021

         Accounts             Debit$        Credit$

Cash                               9,100

Account receivable       14,100

Prepaid rent                   4080

Supplies                          710

Deferred revenue                               1,575

Salaries payable                                  700

Common stock                                    11,000

Retain earnings                                   5,100

Service revenue                                 45,245

Salaries expenses          31,200

Rent expenses                2,040

Supplies expenses         <u>2,390</u>          <u>              </u>

Total                                $<u>63,620</u>     $<u>63,620</u>

Prepaid rent = 6,120 - 2,040 =  4080

Supplies = 3100 - 2390 = 710

Deferred revenue = 2,100 - 525 = 1575

8 0
3 years ago
The temperature in Gavin’s oven is a sinusoidal function of time. Gavin sets his oven so that it has a maximum tem- perature of
kondor19780726 [428]
It equals so divide 45 in 377
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3 years ago
Obama Company sells its product for $25 per unit. During 2012, it produced 20,000 units and sold 15,000 units (there was no begi
horrorfan [7]

Answer:

Unitary cost= $12

Explanation:

Giving the following information:

direct materials $5

direct labor $4

variable overhead $3

The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead) to calculate the product unitary cost.

Unitary cost= 5 + 4 + 3= $12

3 0
3 years ago
ackenzie, Inc. has collected the following data.​ (There are no beginning​ inventories.) Units produced 600 units Sales price $
Leokris [45]

Answer:

The correct answer is A.

Explanation:

Giving the following information:

Units produced= 600

Direct materials $30 per unit

Direct labor $13 per unit

Variable manufacturing overhead $6 per unit

Fixed manufacturing overhead $17,800 per year

Ending inventory= 600 - 400= 200 units

Under absorption costing, the fixed overhead costs get allocated to the product cost. First, we need to calculate the unitary fixed overhead cost:

Unitary fixed overhead= 17,800/600= $29.67

Now, we can determine the total unitary cost:

Unitary cost= direct material + direct labor + total overhead

Unitary cost= 30 + 13 + (6 + 29.67)= $78.67

Ending inventory= 200*78.67= $15,736

7 0
3 years ago
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