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Commerce · Q20

Costing

Graduate and Post Graduate · Commerce · question 20

Q20

Comparing Rowan plan and Halsey plan, it is seen that when the time saved is less than 50% of the standard time ________._

A.
Rowan plan allows more wages to a worker than Halsey plan
Answer
B.
Rowan plan allows less wages to a worker than Halsey plan
C.
Rowan and Halsey plan allow equal wages to a worker
D.
Rowan plan and Halsey plan are equal to ordinary time wage

Answer: Option A

Solution

Answer: Option A
Solution:
Comparing Rowan plan and Halsey plan, it is seen that when the time saved is less than 50% of the standard time, Rowan plan allows more wages to a worker than Halsey plan.