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Commerce · Q111

Costing

Graduate and Post Graduate · Commerce · question 111

Q111

Merricks multiple piece rate system has _______.

A.
two rates
B.
three rates
Answer
C.
four rates
D.
five rates

Answer: Option B

Solution

Answer: Option B
Solution:
Merricks multiple piece rate system has three rates. According to this plan, three piece rates for a job is fixed. None of these three piece rates are fixed below the normal level. These three rates are applied in the manner given below: Rates Bonus Incentive 1. Upto 83 '/3% Normal Rate 2. Above 83 1/3 % to 100% 110% of Normal Rate 3. Above 110% 120% of Normal Rate