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Compensation Management
Compensation Management
Compensation Management
True/False
Question
IT jobs still remain the best paying jobs in the country.
Correct Answer
True
Your Answer
True
True/False
Question
Within the factory group promotion is important.
Correct Answer
False
Your Answer
True
True/False
Question
Indirect labour cost forms a part of overheads.
Correct Answer
True
Your Answer
True
Match The Following
Question
Correct Answer
Your Answer
Top managers
Non-financial benefits
Non-financial benefits
Workers
Piece-rate
Bonus
Salesmen
Commission
Commission
Managers
Bonus
Compensatory day-off
True/False
Question
Performance standards & norms for incentive payments should be set up high for better results.
Correct Answer
False
Your Answer
False
True/False
Question
To maintain best manpower in the organization, Management Incentive Plan based on the individual performance
is necessary.
Correct Answer
True
Your Answer
True
True/False
Question
Wage and salary administration should be controlled by some proper agency.
Correct Answer
True
Your Answer
False
True/False
Question
Contribution to the Provident Funds are made at certain rate or certain percentage of salary of employee, only by
the Employer.
Correct Answer
False
Your Answer
False
True/False
Question
Incentive schemes should be installed right from beginning of production.
Correct Answer
False
Your Answer
True
True/False
Question
Wage & salary are also subject to a variety of legislation & in this context, compliance with existing legislative
measure is very important.
Correct Answer
True
Your Answer
True
True/False
Question
Provident fund is component of gross earnings.
Correct Answer
False
Your Answer
True
True/False
Question
Incentive payments should be made at the end of fiscal year.
Correct Answer
False
Your Answer
False
True/False
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).
Correct Answer
True
Your Answer
True
True/False
Question
Equal remuneration Act, 1976 discriminates on the ground of sex against women in the matter of employment.
Correct Answer
False
Your Answer
False
True/False
Question
Education expenses on employee's family members paid or reimbursed by the employer are not taxable.
Correct Answer
False
Your Answer
True
Select The Blank
Question
Casual workers comes under ________ class of workers.
Correct Answer
Unskilled
Your Answer
Unskilled
True/False
Question
Trade unions do affect rate of wages.
Correct Answer
True
Your Answer
False
True/False
Question
E.S.I. Act does make a distinction between technical and non-technical employees.
Correct Answer
False
Your Answer
True
True/False
Question
Wage & salary are also subject to a variety of legislation & in this context, compliance with existing legislative
measure is very important.
Correct Answer
True
Your Answer
True
True/False
Question
Taylor differential piece rate system is difficult to understand and implement.
Correct Answer
False
Your Answer
False
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
True/False
Question
Indirect labour cost are distributed on a basis of suitable proportion.
Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer
Question
In Compensation plans the following are taken into account :-
Correct Answer
Cost of production , Reduction in expenses , Profits made
Your Answer
Cost of production , Reduction in expenses , Profits made , Losses incurred
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
True
True/False
Question
Any other amenity or service excluded from the computation of wages by a general or special order of appropriate
Govt.
Correct Answer
False
Your Answer
True
True/False
Question
Incentive schemes should be installed right from beginning of production.
Correct Answer
False
Your Answer
True
True/False
Question
Performance standards & norms for incentive payments should be set up high for better results.
Correct Answer
False
Your Answer
True
True/False
Question
Surprise check on calculation & disbursement of payments is necessary to avoid any fraud.
Correct Answer
True
Your Answer
True
True/False
Question
An employee gets deduction to the extent, professional tax paid by him from income chargeable under 'salaries'.
Correct Answer
True
Your Answer
True
True/False
Question
With about 2-5 years of experience, an employee can move upto manager level from executive level in IT industry.
Correct Answer
True
Your Answer
True
True/False
Question
Incentive schemes sometimes lead to jealousies and misunderstanding among the workers.
Correct Answer
True
Your Answer
True
True/False
Question
Any contribution to pension, provident fund or a scheme of social security etc. amounts to wages.
Correct Answer
False
Your Answer
True
True/False
Question
Equal remuneration Act, 1976 discriminates on the ground of sex against women in the matter of employment.
Correct Answer
False
Your Answer
False
True/False
Question
Provident fund is component of gross earnings.
Correct Answer
False
Your Answer
True
Match The Following
Question
Correct Answer
Your Answer
Remuneration
Employees
Two
Wage Differentials
Three categories
Employees
Mathematical tables
Calculations
Calculations
Elements of good Wage Plan
Two
Four Categories
True/False
Question
Monitory payment often act as motivators and satisfiers interdependently of other job factors.
Correct Answer
True
Your Answer
True
True/False
Question
Rate of change in the working force of an organisation during a period of time is known as employee turnover.
Correct Answer
True
Your Answer
True
True/False
Question
Overtime paid for uncontrollable reasons is charged to Profit and Loss Account.
Correct Answer
True
Your Answer
True
True/False
Question
Economic system does result in the concentration of wealth.
Correct Answer
False
Your Answer
True
True/False
Question
Surprise check on calculation & disbursement of payments is necessary to avoid any fraud.
Correct Answer
True
Your Answer
True
True/False
Question
Direct labour costs are included in cost of production of each unit.
Correct Answer
True
Your Answer
True
True/False
Question
If workers do not understand relationship between performance and rewards, incentive plans cannot motivate
workers.
Correct Answer
True
Your Answer
True
True/False
Question
IT jobs still remain the best paying jobs in the country.
Correct Answer
True
Your Answer
True
True/False
Question
Overtime paid because of inefficiency of other department is charged to the job.
Correct Answer
False
Your Answer
True
True/False
Question
Employee turnover rate focuses on stability of employee in the organisation.
Correct Answer
False
Your Answer
True
True/False
Question
The cost of time lost in strikes is charged to Profit & Loss Account.
Correct Answer
True
Your Answer
False
True/False
Question
Insurance of a worker is a part of gross salary.
Correct Answer
False
Your Answer
True
True/False
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'.
Correct Answer True
Your Answer True
True/False
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).
Correct Answer True
Your Answer False
True/False
Question Taylor differential piece rate system is suitable for large scale production.
Correct Answer True
Your Answer True
High wage level system Incentive to worker to improve performance Fixed cost decreases
Graduated time rate system Economical factor is consider Protect learners & slow workers
Piece rate system & time rate combination Protect learners & slow workers Incentive to worker to improve
performance
True/False
Question The Scanlon plan of profit sharing is more effective where no of participants is more than 1000.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question HR or Personnel department realises the relative worth of jobs by :-
Correct Answer Job evaluation
Your Answer Job evaluation
True/False
Question Insurance of a worker is a part of gross salary.
Correct Answer False
Your Answer False
True/False
Question Employer's contribution to Superannuation Fund is taxable.
Correct Answer False
Your Answer False
True/False
Question If the car is used for office duty, only the value of the use of motor car is taken as 'NIL'.
Correct Answer True
Your Answer True
True/False
Question In case of construction work / transportation / bidi rolling businesses, internal check of disbursement of
payment to workers is very important.
Correct Answer True
Your Answer True
True/False
Question If workers do not understand relationship between performance and rewards, incentive plans cannot
motivate workers.
Correct Answer True
Your Answer True
Compensation Management - 8
True/False
Question Within the factory group promotion is important.
Correct Answer False
Your Answer False
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
True/False
Question Direct labour costs are included in cost of production of each unit.
Correct Answer True
Your Answer True
True/False
Question Performance standards & norms for incentive payments should be set up high for better results.
Correct Answer False
Your Answer True
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
Taylor's differential piece-rate plan No fear of wage cut Gradual increase in remuneration based on efficiency
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
True/False
Question The cost of time lost in strikes is charged to Profit & Loss Account.
Correct Answer True
Your Answer True
True/False
Question Salary is still the only or chief motivator for IT employees.
Correct Answer False
Your Answer True
True/False
Question Incentive schemes sometimes lead to jealousies and misunderstanding among the workers.
Correct Answer True
Your Answer True
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
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
Compensation Management - 7
True/False
Question IT jobs still remain the best paying jobs in the country.
Correct Answer True
Your Answer True
True/False
Question Many companies have chosen some what shady reimbursement or perquisite in order to contain the
overall cost in the assumption of being non taxable.
Correct Answer True
Your Answer True
True/False
Question Rate of change in the working force of an organisation during a period of time is known as employee
turnover.
Correct Answer True
Your Answer True
True/False
Question Compensation given to an employee on termination or dismissal is considered as Salary Income.
Correct Answer True
Your Answer False
True/False
Question Time booking helps to ascertain direct and indirect labour costs.
Correct Answer True
Your Answer False
True/False
Question To maintain best manpower in the organization, Management Incentive Plan based on the individual
performance is necessary.
Correct Answer True
Your Answer True
True/False
Question With about 2-5 years of experience, an employee can move upto manager level from executive level in IT
industry.
Correct Answer True
Your Answer True
True/False
Question Economic system does result in the concentration of wealth.
Correct Answer False
Your Answer True
True/False
Question Group incentive system is more widely prevalent in the Indian industry than the system of individual
incentive.
Correct Answer True
Your Answer True
Time' incentive plan Delays in work are frequent Unsupervised nature of job
Output' Incentive plan Units of output are measurable Units of output are measurable
Journal entry Amounts of debit & credit Amounts of debit & credit
Compensation Management - 13
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