Compensation Management - 11

Question Minimum wages are not to be fixed in an industry which
employs less then how many employees in the entire state?
Answer 1000
Question Control of labour cost is essential in every organisation to
:-
Answer Determine indirect labour cost.
Question Effectiveness of incentive system is ascertained with the
help of :-
Answer Efficiency report.
Question In case of ________ workers payment is done on the basis of
total work done.
Answer Casual
Question Following are unavoidable causes of employees turnover :-
Answer Retirement , Marriage
Question Cost of labour minute operation is available from :-
Answer Job cards.
Question Broad groups may be illustrated within manufacturing as :-
Answer Managerial , Clerical , Factory
Question Contribution to the Provident Funds are made at certain rate
or certain percentage of salary of employee, only by the Employer.
Answer False
Question The management must concentrate on creating proper
industrial relations climate before introducing incentive schemes.
Answer True
Question Time booking helps to ascertain direct and indirect labour
costs.
Answer True
Question ________ generated out of payroll system shows amounts of
debits and credits.
Answer Journal entry
Question In post IPO stage, dotcom company gives its employees :-
Answer Balanced total reward package
Question In material costing ________ Costs are written at to
Marginal profit & loss A/c.
Answer Fixed
Question If the employee receives conveyance allowance, or, he is
provided with a vehicle by employer, he is not eligible to get 'Standard
deduction' from his salary.
Answer False
Question Overtime payment given to the worker for completing work
before scheduled date art the instruction of buyer is treated as ________
cost
Answer Direct
Question Major features of production are :-
Answer Labour , Land , Capital
Question The Scanlon plan of profit sharing is more effective where
no of participants is more than 1000.
Answer False
Question In developmental phase, the dotcom companies concentrate on
:-
Answer Building brand
Question In recent times, in addition to stock options, employees of
dotcom companies are demanding :-
Answer Cash bonus
Question Sequence of operations for a job is clear in case of :-
Answer Job cards.
Question The wages of workers not present at the time of payment
disbursement should be entered into ________.
Answer Undisbursed wage register
Question Wage & salary are also subject to a variety of legislation &
in this context, compliance with existing legislative measure is very
important.
Answer True
Question For the valuation of rent free accommodation, 'Salary'
includes :
Answer D A , Bonus , Education Allowance
Bonus to top management Overall corporate results Overall corporate
results

Time' incentive plan Delays in work are frequent Delays in work are
frequent

Output' Incentive plan Units of output are measurable Units of output are
measurable

Commission' to salesmen Unsupervised nature of job Unsupervised nature
of job

Select The Blank
Question In the history of Indian IT industry, the year 2001-2002
will be remembered as ________.
Answer Year of lay-offs
Question Basic compensation systems are :-
Answer Time rate system , Piece rate system
Question Dotcom companies were founded to go beyond :-
Answer Physical business
Question From economic and ________ point of view woman was subject
to man.
Answer Social
Question In effective incentive plan, standards on which plan is
based should be :-
Answer Fair , Reasonable , Specific
Question The cost of living pay criterion is usually regarded as an
automatic minimum equity pay criterion
Answer True
Question E.S.I. Act aims at providing for certain cash benefits to
employees in case of :-
Answer Sickness , Maternity , Medical
Question Wages have at least ________ connotations from stand points
of employers and employees.
Answer 2

Psychological & social factor Determines how hard a person will work for
compensation received Determines how hard a person will work for
compensation received

Trade union bargaining power Affect rate of wages Affect rate of wages

Job requirement The more difficult a job, the higher the wages The more
difficult a job, the higher the wages

Managerial attitudes Decisive influence on the wage structure
Decisive influence on the wage structure

Multiple Choice Single Answer
Question Rate range can be developed in many ways, one usually
adopted is :-
Answer Wage curve
Question Earning in time rate systems, at ordinary levels is
calculated by formula :-
Answer Rate per hour x hours worked
Question Remuneration paid for the service of the labour in
production is :-
Answer Wage
Question Contribution to the P.F. have to be remitted along with the
challan for Account No.:-
Answer 2 , 21 , 10
Question Payment is done on the basis of units of output, incase of
________ workers.
Answer Piece
Question Differential piece rate system is suitable where :-
Answer Fixed costs are higher in proportion to veriable cost , It
is possible to count production accurately , There are standardised methods
of production
Question Cost of time spent on conducting interviews & selecting a
candidate for ________ is called Replacement cost.
Answer Replacement
Question Direct labour cost varies in proportion to output of
production.
Answer False
Question Group incentive system is more widely prevalent in the
Indian industry than the system of individual incentive.
Answer True
True/False
Question The management must concentrate on creating proper
industrial relations climate before introducing incentive schemes.
Answer True
Question Time booking on job helps for :-
Answer Estimating labour cost.
Question ________ is the unique code allotted to each & every
employee in the organization.
Answer Employee No.
Question Monetary incentive plans result in :-
Answer Greater output per man-hour , Lower unit cost , Higher wages

Question First to lay down the guidelines for fixation of Minimum
Wages was :-
Answer Indian Labour Conference
Question At germination stage, to attract and retain talent, dotcom
companies offer :
Answer Stock option
Question Payment is done on the basis of units of output, incase of
________ workers.
Answer Piece
Question In Payroll process, Cost of Living Index provides the basis
for calculating :-
Answer D.A.
Question Following are causes of idle time of labour pertaining to
production,
Answer Failure of electricity. , Seasonal nature of demand. ,
Breakdown of machinery
Question Usually multinational companies ay higher than small scale
industry.
Answer True
Question When a dotcom company starts earning profits, promoters are
focused on the launch of:-
Answer IPO
Question Correct Answer

Cost accounting Dept. Accumulation & classification all cost data

Personnel Dept. Selection & training of employees.

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

Engineering Dept. Preparation of time & motion studies

Multiple Choice Multiple Answer
Question Salient features of profit-sharing are :-
Answer Agreement is voluntary , Payment may be in cash / stock of
future credits , Computation on the basis of some agreed formula
Question Any imbalance in input-output relation in any incentive
payment scheme can result in :-
Answer Tension , Lower productivity , More absenteeism
Question A worker produces 50 units a week of 06 days and piece rate
is Rs.2/- per piece. Then his earning will be :-
Answer Rs.100/-
Question ________ are also aid to executives a certain percentage of
the profits.
Answer Bonuses
Question Education expenses on employee's family members paid or
reimbursed by the employer are not taxable.
Answer False
Question In post IPO stage, dotcom company gives its employees :-
Answer Balanced total reward package
Question Payment to out workers is done on ________ basis.
Answer Monthly
Question Following are causes of idle time of labour pertaining to
administration :-
Answer Poor management , Management policy
Question In recent times, in addition to stock options, employees of
dotcom companies are demanding :-
Answer Cash bonus
Elements of good Wage Plan Two

Remuneration Employees

Wage Differentials Three categories

Mathematical tables Calculations

Question The scanlon plan of profit sharing gives utmost importance
to ________.
Answer Employee participation
Question Apart from salaries, IT employees are giving importance to
:-
Answer Company image , Job content , Job security
Question Article 43 reads: State shall endeavour to secure by
suitable legislation to all :-
Answer Agricultural workers , Industrial , Working in a living wage

Question The cost of time lost in setting a machine is treated as
indirect cost.
Answer False
Question The contemporary practice for enhancing organizational
growth involves focuses on internal and external factors such as :-
Answer Customer needs , Market trends , Costs
Question Wage differentials have a great ________ and social
significance.
Answer Economic
Question ________ is a source document for preparation of wage sheet.
Answer Attendance Register
Question In addition to the result of job analysis and wage survey
several other variables have to be given due consideration in establishing
:-
Answer Wage structure
Question Wage differentials have been classified into ________
categories.
Answer 3
Question Individuals from various level of the organisation have
different :-
Answer Life Style
Question ________ are assured of a stable amount of money.
Answer Employees
Question ________ provides benefits at the time of retirement/ death
/ following disability of worker.
Answer Deferred plan
Question Demand for a particular skill is high and supply is low,
compensation given is:-
Answer High
Question Employee's State Insurance Act, ________ is a pioneering
measure in the field of social insurance of our country.
Answer 1948
Question Bonus, as the incentive to managers is determined :-
Answer By formula , By discretion used in allocation of bonus
Question In developmental phase, the dotcom companies concentrate on
:-
Answer Building brand
Question Following are the forms of the cost of replacement :-
Answer Cost of advertisement for recruitment , Cost of conducting
interviews , Cost of interruption in production
Question Any other amenity or service excluded from the computation
of wages by a general or special order of appropriate Govt.
Answer False
Question Minimum wages are not to be fixed in an industry which
employs less then how many employees in the entire state?
Answer 1000
Question Remuneration paid for the service of the labour in
production is :-
Answer Wage
Question Profit sharing plans can be on :-
Answer Industry basis , Locality basis , Unit basis
Question Provident Funds can be of the following types :-
Answer Statutory Provident Fund , Recognised Provident Fund ,
Public Provident Fund
Question Direct labour cost varies in proportion to output of
production.
Answer False
Question Components of deductions in salary are :-
Answer E.S.I. , Housing loan installment.
Question Payment is done on the basis of units of output, incase of
________ workers.
Answer Piece

Posted in: Compensation Management (Set-4)