Piece rate is

Piece rate is

• A. A fixed salary per month
• B. A payment system where workers receive a set amount per hour
• C. A payment system where workers receive an amount for each unit produced
• D. A bonus payment based on targets

Answer: (C)

Piece rate is a method of paying workers where their earnings are directly linked to the number of units they produce. Instead of receiving a fixed salary or an hourly wage, they earn a set amount for each unit completed. This makes payment variable and tied to output, so more production means more pay. It’s different from a bonus based on targets, which is extra pay awarded for meeting goals rather than for each unit produced, and it’s also not a fixed monthly salary or hourly rate.

Piece rate is a method of paying workers where their earnings are directly linked to the number of units they produce. Instead of receiving a fixed salary or an hourly wage, they earn a set amount for each unit completed. This makes payment variable and tied to output, so more production means more pay. It’s different from a bonus based on targets, which is extra pay awarded for meeting goals rather than for each unit produced, and it’s also not a fixed monthly salary or hourly rate.