Vidyalelo
Commerce · Q21

Costing

Graduate and Post Graduate · Commerce · question 21

Q21

Bonus under Rowan scheme is paid ________.

A.
as a proportion of standard time to actual time
B.
as a proportion of actual time to standard time
C.
as a proportion of time saved to standard time
Answer
D.
as a proportion of standard time to time saved

Answer: Option C

Solution

Answer: Option C
Solution:
Bonus under Rowan scheme is paid as a proportion of time saved to standard time. In the Halsey Plan, bonus is usually set at 50% of the time saved. It does not serve as a strong incentive. On the other hand under the Rowan Plan, bonus is that proportion of the wages of the time taken which the time saved bears to the standard time.