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Commerce · Q122

Costing

Graduate and Post Graduate · Commerce · question 122

Q122

Under which method the rate of wages are linked with the cost of living index?

A.
Flat time rate
B.
High day rate
C.
Measured day rate
D.
Graduated time rate
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Under Graduated time rate method the rate of wages are linked with the cost of living index. Under this method the rates of wages are linked up with the cost of living index. Thus, the rate per hour or day fixed initially goes on changing with the changes in the cost of living index.