Compensation Management - 12

Question The lacuna which led to the introduction of 'Employee's
Deposit Linked Insurance Scheme' did not have effect from :-
Answer 7th of March 1971 , 3rd of March 1971 , 2nd of March 1971
Question Time rate system at ordinary level is suitable where :-
Answer Quality of output is of great importance , Quantitative
measurement of work is not possible , Production unit is small
Question In piece rate & time rate combination, if payment is
calculated on the basis of piece rate guaranteed and if number of pieces
fall below the minimum wages guaranteed, he is paid by time rate (T).
Answer True
Question E.S.I. Act aims at providing for certain cash benefits to
employees in case of :-
Answer Sickness , Maternity , Medical
Question Overtime payment given to the worker due to inefficiency of
other department is charged to ________.
Answer Responsible Department
Question Wage differentials are inter-industry, inter-firm and
________.
Answer Inter area
Question If the point method of job evaluation is used the pay grade
consists of jobs falling within the range of :-
Answer Points
Question ________ is the unique code allotted to each & every
employee in the organization.
Answer Employee No.
Question Earning in time rate systems, at ordinary levels is
calculated by formula :-
Answer Rate per hour x hours worked
Question The nature and extent of wage differential are conditioned
by a ________.
Answer Set of factors
Question Monetary incentive plans result in :-
Answer Greater output per man-hour , Lower unit cost , Higher wages

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 For adequate and effective internal check on disbursement of
wages, these factors are important :-
Answer Proper time recording , Proper record of output by workers ,
Well-defined terms of remuneration and incentive schemes
Question With about 2-5 years of experience, an employee can move
upto manager level from executive level in IT industry.
Answer True
Question In dotcom companies, there is :-
Answer Huge no of employees , Direct interaction with customers and
client organizations , Reduction of capital cost
Question Any other amenity or service excluded from the computation
of wages by a general or special order of appropriate Govt.
Answer False
Question In effective incentive plan, standards on which plan is
based should be :-
Answer Fair , Reasonable , Specific
Question The institutions of marriage and family are also to be found
in every :-
Answer Society
Institutions of marriages & family Society Metros

Past Marriages Permanent Society

Question In the history of Indian IT industry, the year 2001-2002
will be remembered as ________.
Answer Year of lay-offs
Question Sequence of operations for a job is clear in case of :-
Answer Job cards.
Question The wage structure or grade is comprised of jobs of
appropriately equal difficulty or importance as determined by :-
Answer Job evaluation
Question Generally, the strong & more powerful is the trade union,
the ________ are the wages.
Answer Higher
Question Overtime payment given to the worker due to general pressure
of work is treated as ________ cost.
Answer Indirect
Question In standard costing, cost is controlled through :-
Answer Variance analysis
Question The expenditure on remuneration of workers/employees
responsible for conversion of raw material into finished products is called
:-
Answer Direct labour
Employee turnover Separation rate Difficult to control

Direct labour cost Difficult to control Fixed costs

Indirect labour cost Cannot be easily identified with product
Cannot be easily identified with product

Stability index Skill dilution index Skill dilution index

Question Hospitality industries includes :-
Answer Hotels
Question By using straight piece rate system of compensation output
:-
Answer Increases
Question Ratio of number persons over 4 years of service at present
to total employed 4 years ago is called ________
Answer Skill wastage index
Question Group incentive plans may not become successful due to :-
Answer Unevenness of performance of different members of groups ,
Ill-feeling among group members , No recognition for individual performance
Question compensation should be ________ efficiency & result .
Answer Directly proportional
Question Rate of change in the working force of an organisation
during a period of time is known as employee turnover.
Answer True
Question In case of construction work / transportation / bidi rolling
businesses, internal check of disbursement of payment to workers is very
important.
Answer True
Question Group incentive system is more widely prevalent in the
Indian industry than the system of individual incentive.
Answer True
Question After deducting depreciation and initial or development
rebate from profit, we arrive at ________.
Answer Surplus profit
Question Profession Tax is deducted as per the enactment by :-
Answer State Govt.
Question Gradewise flat allowances are also being considered
generally except where tax exemption benefit are still available.
Answer True
Question Incentive plans fail due to :-
Answer Unfair standards , Fear of rate cut , Lack of required tools
/ training
Question Any imbalance in input-output relation in any incentive
payment scheme can result in :-
Answer Tension , Lower productivity , More absenteeism
Question The management must concentrate on creating proper
industrial relations climate before introducing incentive schemes.
Answer True
Question Wage & salary administration refers to the establishment and
implementation of sound policies and practices of employee :-
Answer Compensation
Question Factors not related to money can also serve as ________.
Answer Attention seekers
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 :-
Answer Wedlock
Question Wages have at least ________ connotations from stand points
of employers and employees.
Answer 2
Question Advantage of disc method of attendance recording is :-
Answer Suitable for illiterate worker.
Question Overtime paid because of inefficiency of other department is
charged to the job.
Answer False

Under E.S.I. employee's contribution 0.0175 0.0175

Employee Pension Scheme is 8.33% of Employer Employer

Employer & Employee Contribution under E.P.F. 0.12 0.12

Under E.S.I., employer's contribution 0.0475 0.0475

Question The cutting edge of an organization is its people. The work
culture thus is being redefined to bring out the best in :-
Answer Employees , Managers , Executives
Question When a dotcom company starts earning profits, promoters are
focused on the launch of:-
Answer IPO
Question Halsey Premium plan is a combination of the day wage & piece
wage in modified form.
Answer True
Question Main features of society are :-
Answer Domination of machines , Exploitation of workers , Poor
working conditions
Question In material costing ________ Costs are written at to
Marginal profit & loss A/c.
Answer Fixed
Question Level II in junior managers comprises of :-
Answer Engineers , Officers , Senior Engineers
Question Forces that favour regional differences are :-
Answer Low mobility , Lower skilled job , Sources of income
Question ________ under profit sharing contributes directly to an
employee's immediate economic gain.
Answer Cash plan
Question Indirect labour cost forms a part of overheads.
Answer True
Question In following circumstances of overtimes, the cost is treated
indirect costs :-
Answer General pressure of work. , Inefficiency.
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 To make Scanlon plan successful, there should be :-
Answer Stable product lines and costs , Strong commitment to plan ,
Healthy labour relations
Question Monetary incentives imply :-
Answer External motivation
Question Return and wage differentials are contained by a set of
factors such as :-
Answer Market conditions , Bargaining power , Productivity
Question Monitory payment often act as motivators and satisfiers
interdependently of other job factors.
Answer True
Question Time booking on job helps for :-
Answer Estimating labour cost.
Question Process of readjustment inevitable calls for changes in the
________ system and its practice.
Answer Human Resource
Question Wage differentials have a great ________ and social
significance.
Answer Economic
Question Employee turnover rate focuses on stability of employee in
the organisation.
Answer False
Question Jobs are graded according to the relative skill :-
Answer Effort , Responsibility , Calculations
Question Direct labour costs are included in cost of production of
each unit.
Answer True
Question ________ provides benefits at the time of retirement/ death
/ following disability of worker.
Answer Deferred plan
Question To minimize disparity in wages & levels, following act is
passed :-
Answer Minimum wages Act
Question A job is rated to determine :-
Answer Its value relative to other jobs in organization
Article 43 Emphasizes need for legislation To avoid exploitation of
labour

I. L. O. To bring appropriate payment systems Increase economic
welfare

Child Exploitation Article 39 Article 39

Wage Policy Increase economic welfare To bring appropriate payment
systems

Question Cost accounting department analyze payroll for the purpose
of revealing :-
Answer Normal and abnormal idle time , Direct & indirect labour ,
Variance from budgeted costs
Question Marriages were supposed to be made in :-
Answer Heaven
Question Bonus is component of deductions.
Answer False
Question Provident Funds can be of the following types :-
Answer Statutory Provident Fund , Recognised Provident Fund ,
Public Provident Fund

Posted in: Compensation Management (Set-4)