Compensation Management - 8

LIST OF ATTEMPTED QUESTIONS AND ANSWERS 2nd

Select The Blank
Question During the research it was found that in certain cities prevailing wage rate are ________where as organizational ability to pay is more.
Correct Answer Very low
Your Answer Very low

True/False
Question Within the factory group promotion is important.
Correct Answer False
Your Answer False

Multiple Choice Single Answer
Question Perquisites or profits or any remuneration received from person other than employer is taxable under the head :-
Correct Answer Income from other sources
Your Answer Income from other sources

Select The Blank
Question ________ under profit sharing contributes directly to an employee's immediate economic gain.
Correct Answer Cash plan
Your Answer Cash plan

True/False
Question House rent allowance paid to a employee residing in his own house is not exempt from tax.
Correct Answer True
Your Answer True

Select The Blank
Question Wage differentials are inter-industry, inter-firm and ________.
Correct Answer Inter area
Your Answer Inter area

True/False
Question Direct labour costs are included in cost of production of each unit.
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question Time spent by same worker on various jobs is recorded on daily basis in :-
Correct Answer Daily time sheet.
Your Answer Daily time sheet.

Multiple Choice Multiple Answer
Question Monetary incentive plans result in :-
Correct Answer Greater output per man-hour , Lower unit cost , Higher wages
Your Answer Greater output per man-hour , Lower unit cost , Higher wages

Select The Blank
Question Today there is strong competition for acquiring as much ________ as possible.
Correct Answer Wealth
Your Answer Wealth

Select The Blank
Question Executives are compensated for the various ________ incurred by them.
Correct Answer Expenses
Your Answer Expenses

Multiple Choice Multiple Answer
Question Broad groups may be illustrated within manufacturing as :-
Correct Answer Managerial , Clerical , Factory
Your Answer Managerial , Clerical , Factory

Multiple Choice Multiple Answer
Question Bonus, as the incentive to managers is determined :-
Correct Answer By formula , By discretion used in allocation of bonus
Your Answer By formula , By discretion used in allocation of bonus , By Board of Directors

Select The Blank
Question ________ generated out of payroll system shows amounts of debits and credits.
Correct Answer Journal entry
Your Answer Bills entry

True/False
Question Performance standards & norms for incentive payments should be set up high for better results.
Correct Answer False
Your Answer True

Match The Following
Question Correct Answer Your Answer

Merric's multiple piece rate plan Low piece rate for slow workers and high piece rate for higher production Sharing profits undertaking

Emerson efficiency plan Gradual increase in remuneration based on efficiency Bonus to the group

Co-partnership system Sharing profits undertaking No fear of wage cut

Taylor's differential piece-rate plan No fear of wage cut Gradual increase in remuneration based on efficiency


Multiple Choice Single Answer
Question Following is method of time booking :-
Correct Answer Daily time sheet.
Your Answer Time recording clock.

Multiple Choice Single Answer
Question Work study department is engaged in activities like determining :-
Correct Answer Standard procedure
Your Answer Labour cost

Match The Following
Question Correct Answer Your Answer

Cost accounting Dept. Accumulation & classification all cost data Selection & training of employees.

Personnel Dept. Selection & training of employees. Selection & training of employees.

Payroll Dept. Maintain record of wage rate of each employee. Maintain record of wage rate of each employee.

Engineering Dept. Preparation of time & motion studies Preparation of time & motion studies


Multiple Choice Multiple Answer
Question Following are unavoidable causes of employees turnover :-
Correct Answer Retirement , Marriage
Your Answer Retirement , Marriage

True/False
Question The cost of time lost in strikes is charged to Profit & Loss Account.
Correct Answer True
Your Answer True

Select The Blank
Question Ratio of number persons over 4 years of service at present to total employed 4 years ago is called ________
Correct Answer Skill wastage index
Your Answer Skill wastage index

Multiple Choice Multiple Answer
Question Following are causes of idle time of labour pertaining to production,
Correct Answer Failure of electricity. , Breakdown of machinery
Your Answer Failure of electricity. , Seasonal nature of demand. , Breakdown of machinery

Multiple Choice Single Answer
Question Disadvantage of maintaining hand written register for attendance is :-
Correct Answer Depends upon honesty.
Your Answer Depends upon honesty.

True/False
Question Salary is still the only or chief motivator for IT employees.
Correct Answer False
Your Answer True

Select The Blank
Question Cost of time spent on conducting interviews & selecting a candidate for ________ is called Replacement cost.
Correct Answer Replacement
Your Answer Replacement

True/False
Question The cost of living pay criterion is usually regarded as an automatic minimum equity pay criterion
Correct Answer True
Your Answer False

True/False
Question Incentive schemes sometimes lead to jealousies and misunderstanding among the workers.
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer
Question Article 43 reads: State shall endeavour to secure by suitable legislation to all :-
Correct Answer Agricultural workers , Industrial , Working in a living wage
Your Answer Agricultural workers , Industrial , Working in a living wage

Multiple Choice Multiple Answer
Question Advantages of having several pay ranges for each organisations are :-
Correct Answer The management could take a more flexible stance with respect to the labour market , It made it easy to attract experienced employees from other organisations , It helped to ensure that there was an overlap between the pay rates and those prevailing in the labour market
Your Answer The management could take a more flexible stance with respect to the labour market , It made it easy to attract experienced employees from other organisations , It helped to ensure that there was an overlap between the pay rates and those prevailing in the labour market

True/False
Question If an employee pays fees for attending some management course, the fees can be allowed for deduction from salary income.
Correct Answer False
Your Answer False

Multiple Choice Multiple Answer
Question In profit-sharing plan, employees :-
Correct Answer Work more diligently , Try to achieve higher profits , Fulfill entirely their responsibilities
Your Answer Work more diligently , Try to achieve higher profits , Fulfill entirely their responsibilities

Select The Blank
Question ________ of payment recognizes that individuals are concerned about the money paid to them and also the relationship of this amount to what others are paid.
Correct Answer Equity approach
Your Answer Equity approach

Multiple Choice Single Answer
Question The total of direct & indirect material, labour & expenses is called :-
Correct Answer Total cost of production
Your Answer Prime cost

Multiple Choice Multiple Answer
Question Profit sharing plans can be on :-
Correct Answer Industry basis , Locality basis , Unit basis
Your Answer Industry basis , Locality basis , Unit basis

Select The Blank
Question Persons interested in enhancing their reputations and receiving recognition may respond to ________.
Correct Answer Verbal praise
Your Answer Verbal praise

Multiple Choice Multiple Answer
Question For the valuation of rent free accommodation, 'Salary' includes :
Correct Answer D A , Bonus , Education Allowance
Your Answer D A , Education Allowance

Multiple Choice Single Answer
Question Towns are getting converted into cities and cities into :-
Correct Answer Metro
Your Answer Metro

Multiple Choice Multiple Answer
Question Scanlon plan of profit sharing aims at :-
Correct Answer Workers participation , Reduction of cost of operation of increased production , Sharing in gains
Your Answer Workers participation , Reduction of cost of operation of increased production , Sharing in gains

Multiple Choice Single Answer
Question Indirect compensation mainly acts as :-
Correct Answer Maintenance factor
Your Answer Maintenance factor

Select The Blank
Question Overtime payment given to the worker due to general pressure of work is treated as ________ cost.
Correct Answer Indirect
Your Answer Indirect

Multiple Choice Multiple Answer
Question Which of the following are used to compensate major executives?
Correct Answer Straight salaries , Bonuses , Profit sharing
Your Answer Straight salaries , Bonuses , Profit sharing

Multiple Choice Single Answer
Question Long-term wage Incentive plans are useful, where :-
Correct Answer Jobs are inter-related
Your Answer Jobs are inter-related

Multiple Choice Single Answer
Question Group incentive payments are :-
Correct Answer Less than individual ones
Your Answer Less than individual ones

Multiple Choice Single Answer
Question The criterion, that means, wages paid should be adequate to enable an employee to maintain himself and his family at a reasonable level of existence is :-
Correct Answer The living wage
Your Answer The living wage

Multiple Choice Single Answer
Question According to the thinking and beliefs of these young persons, the major need filled by marriage is biological and this can be easily satisfied out of :-
Correct Answer Wedlock
Your Answer Wedlock

True/False
Question The payment of profit sharing plan is of uncertain nature because of uncertainty of profits to the company.
Correct Answer True
Your Answer True