Compensation Management - 13

Question Standards of efficiency should be fixed by taking into
consideration ________ worker & Normal working conditions.
Answer Normal
Question In graduated time rates system, if basic salary is Rs.2000
and dearness allowance is 150% then total remuneration will be :-
Answer Rs.5000/-
Question Job evaluation is the output provided by :-
Answer Job Analysis
Question The persons working in multinational companies occupying the
higher positions in hierarchy enjoy :-
Answer Lavish life-style
Question Incentive schemes sometimes lead to jealousies and
misunderstanding among the workers.
Answer True
Question Dotcom companies were founded to go beyond :-
Answer Physical business
Question Persons interested in enhancing their reputations and
receiving recognition may respond to ________.
Answer Verbal praise
Question IT jobs still remain the best paying jobs in the country.
Answer True
Question In developmental phase, the dotcom companies concentrate on
:-
Answer Building brand
Question Salesmen are usually given incentives in the form of sales
commission because of :-
Answer Unsupervised nature of most sales work , Tradition in the
market , Assumption that incentives are needed to motivate salesman
Question The wage and salary administration is concerned with the
financial aspect of need, reward and :-
Answer Motivation
Question Gross Earnings - Deductions equals ________.
Answer Net Earnings
Question Insurance of a worker is a part of gross salary.
Answer False
Question Organization's ability to pay, determines ________.
Answer Wage level
Question Objectives laid down by I.L.O. are :-
Answer Promote Trade Union , Abolish malpractices , Abuse in wage
payment
Question Article 43 reads: State shall endeavour to secure by
suitable legislation to all :-
Answer Agricultural workers , Industrial , Working in a living wage

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 Main features of society are :-
Answer Domination of machines , Exploitation of workers , Poor
working conditions
Question In Compensation plans the following are taken into account
:-
Answer Cost of production , Reduction in expenses , Profits made
Question ________ had a decisive influence on the wage structure &
wage level.
Answer Managerial attitude
Question The approach of managerial / executive staff towards the
perquisites has changed since last :-
Answer 10 years , 9 years , 8 years
Question Aspects which were considered while determining pay ranges
are :-
Answer Maintain adequate difference between supervisors &
subordinates , Attention must be given to handling upward changes in wage
structure
Question If the rent paid by employee for his accommodation is equal
to or more than the value of rent-free house, the value of the concession in
rent is 'NIL'.
Answer True
Question Gradewise flat allowances are also being considered
generally except where tax exemption benefit are still available.
Answer True
Question A job is rated in order to determine its value relative to
all the others jobs in organization which are subject to :-
Answer Evaluation
Question In marginal costing costs are classified as:-
Answer Fixed & Variable
Question Indirect labour cost forms a part of overheads.
Answer True
Question Which of the following are used to compensate major
executives?
Answer Straight salaries , Bonuses , Profit sharing
Question If classification system is used, the jobs are already
categorized into grade or :-
Answer Class
Question Production bonus is calculated on the basis of output norms
decided through :-
Answer Job analysis , Time studies
Question Cost of employee welfare activities comes under ________
cost.
Answer Preventive

Ranking System Ranks Ranks

Wage and salary administration Compensation Compensation

Remuneration paid Wage Wage

Classification System Class Class

Question Production planning includes :-
Answer Product engineering.
Question Incentive schemes sometimes lead to jealousies and
misunderstanding among the workers.
Answer True
Question Following are economic causes of idle time of labour :-
Answer Trade cycles. , Non availability of working capital.
Question Reward may be money or promotion, but more likely it will be
some pay-off -a smile, and :-
Answer Acceptance by peer
Question The cost of time lost in strikes is charged to Profit & Loss
Account.
Answer True
Question House rent allowance paid to a employee residing in his own
house is not exempt from tax.
Answer True
Question Today there is strong competition for acquiring as much
________ as possible.
Answer Wealth
Question Payment is done on the basis of units of output, incase of
________ workers.
Answer Piece
Question Ratio of number of persons over 4 years of service at
present to present total employees is called ________
Answer Skill dilution index
Question In post IPO stage, dotcom company gives its employees :-
Answer Balanced total reward package
Question Factors not related to money can also serve as ________.
Answer Attention seekers
Question In material costing ________ Costs are written at to
Marginal profit & loss A/c.
Answer Fixed
Employee turnover Separation rate Difficult to control

Direct labour cost Difficult to control Fixed costs

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

Stability index Skill dilution index Skill dilution index

Question One worker is working under piece rate & time rate
combination system of compensation. He has worked in a week of 06 days
consisting of 48 hours. His hourly rate is Rs.2/- per piece. His output for
the week is 40 units. What will be his earning ?
Answer Rs.96/-
Question If the employment is merely incidental to the exercise of a
profession, the gains from such employment would be :-
Answer Professional earnings
Question Group incentive system is more widely prevalent in the
Indian industry than the system of individual incentive.
Answer True
Question IT jobs still remain the best paying jobs in the country.
Answer True
Question ________ is financial / quantitative statement prepared &
approved prior to a period of time.
Answer Budget
Question Consideration for wage and salary administration are :-
Answer Job requirement
Question Person working in MNC's occupying higher positions devote
most of their time for their :-
Answer Employment & job
Question Components of wage & salary are :-
Answer Basic wage , Overtime wage , Dearness allowance
Question Monetary incentives imply :-
Answer External motivation
Question The incentive plan designed for the group based on group's
performance is called :-
Answer Long-term wage incentive plan
Question Taylor differential piece rate system is suitable for large
scale production.
Answer True
Question Salesmen are usually given incentives in the form of sales
commission because of :-
Answer Unsupervised nature of most sales work , Tradition in the
market , Assumption that incentives are needed to motivate salesman
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.
Answer Equity approach
Question Wage Policy is not of great concern to labour, management
and Govt.
Answer False
Question To perform a ________ function by way of determining the
social status of workers.
Answer Social
Question Life and Medical insurance or reimbursement of medical bills
is considered as a part of ________.
Answer Perks
Question Extent of employees turnover depends upon :-
Answer Physical conditions within organisation , Type of industry ,
Male to female ratio
Question Performance standards & norms for incentive payments should
be set up high for better results.
Answer False
Question E.S.I. Act aims at providing for certain cash benefits to
employees in case of :-
Answer Sickness , Maternity , Medical
Question Employer's contribution to Superannuation Fund is taxable.
Answer False
Question Forces that favour regional differences are :-
Answer Low mobility , Lower skilled job , Sources of income
Question The goals and ideals of a traditional Indian family were
spiritual and religious.
Answer True
Question In graduated time rates system, if basic salary is Rs.2000
and dearness allowance is 150% then total remuneration will be :-
Answer Rs.5000/-
Top managers Non-financial benefits Compensatory day-off

Workers Piece-rate Piece-rate

Salesmen Commission Bonus

Managers Bonus Overtime

Question The scanlon plan of profit sharing gives utmost importance
to ________.
Answer Employee participation
Question If workers do not understand relationship between
performance and rewards, incentive plans cannot motivate workers.
Answer True
Question Financial &/or quantitative statement prepared & approved
prior to period of time is called :-
Answer Budget
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 Bonus is component of deductions.
Answer False
Question The ________ criterion is usually regarded as an automatic
minimum equity pay criterion.
Answer Cost of living pay
Question Wages of security men in a production unit comes under :-
Answer Indirect labour
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 Incentive plans fail due to :-
Answer Lack of required tools / training , Unfair standards , Fear
of rate cut
Question Objectives laid down by I.L.O. are :-
Answer Abolish malpractices , Abuse in wage payment , Promote Trade
Union
Question Persons interested in enhancing their reputations and
receiving recognition may respond to ________.
Answer Verbal praise
Question Profit sharing, as an incentive plan, realizes these
advantages :-
Answer Higher profits , Increased efficiency , Climate for better
employee relations
Question Characteristic of a good compensation system is :-
Answer Higher the efficiency of worker, higher is compensation.
Question The institutions of marriage and family are also to be found
in every :-
Answer Society
Question Hospitality industries includes :-
Answer Hotels
Question To make Scanlon plan successful, there should be :-
Answer Stable product lines and costs , Strong commitment to plan ,
Healthy labour relations
Question For higher management, ________ are influenced by the size
of a company, specific industry and the process of decision making.
Answer Salaries
Question Indirect labour cost forms a part of overheads.
Answer True
Question Salary is still the only or chief motivator for IT
employees.
Answer False
Question Perquisites taxable in all cases include :-
Answer Value of rent free accommodation provided by employer to his
employee
Question A good incentive scheme should have :-
Answer Elasticity , Parity , Less operational costs
Question In Taylor differential piece rate system, high piece rate is
applicable if ________.
Answer Output is above standard
Question Leave pay of current year is treated as ________.
Answer Direct Expenses
Question Cost of time spent on conducting interviews & selecting a
candidate for ________ is called Replacement cost.
Answer Replacement
Question One worker is working under piece rate & time rate
combination system of compensation. He has worked in a week of 06 days
consisting of 48 hours. His hourly rate is Rs.2/- per piece. His output for
the week is 40 units. What will be his earning ?
Answer Rs.96/-
Question Wage differentials are of following factors :-
Answer Difference in labour efficiency , Social esteem , Occupation

Question Monetary incentives imply :-
Answer External motivation
Question Documents useful for the purpose of wage analysis are :-
Answer Wage sheets , Payroll , Accounting registers
Question Variance analysis is done in case of :-
Answer Standard costing
Question If classification system is used, the jobs are already
categorized into grade or :-
Answer Class
Question Inter-firm differentials reflect ________ wage levels of
workers.
Answer Relative
Question Wage Policy is of great concern to :-
Answer Labour Management & Govt.
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.
Answer Equity approach
Institutions of marriages & family Society Metros

Past Marriages Permanent Society

Question Incentive payments should be made at the end of fiscal year.
Answer False
Question Most companies as against earlier visible cost don't use the
"Total Cost To The Company".
Answer False
Question During the research it was found that in certain cities
prevailing wage rate are ________where as organizational ability to pay is
more.
Answer Very low
Question In the history of Indian IT industry, the year 2001-2002
will be remembered as ________.
Answer Year of lay-offs

Posted in: Compensation Management (Set - 5)