Compensation Management Bible

Compensation Management

Multiple Choice Multiple Answer

Question

Wage differentials are of following factors :-

Correct Answer

Difference in labour efficiency , Social esteem , Occupation

Your Answer

Occupation , Difference in labour efficiency , Social esteem

Select The Blank

Question

Life and Medical insurance or reimbursement of medical bills is considered as a part

of ________.

Correct Answer

Perks

Your Answer

Social security

Select The Blank

Question

Against the past practice of modest gradual increase applicable to all, with only

marginal additional to the ________ performer.

Correct Answer

Good

Your Answer

Average

Multiple Choice Single Answer

Question

Employees in the railways are entitled of payment of wages Act, 1936 who are

drawing wages and salaries below :-

Correct Answer

Rs. 1600/- a month

Your Answer

Rs. 1600/- a month


Question

Due to the paucity of relevant data on wage differentials, it is possible to analyze in

India :-

Correct Answer

Wage structure , Pay structure , Salary structure

Your Answer

Wage structure , Pay structure , Salary structure


Question

Any imbalance in input-output relation in any incentive payment scheme can result

in :-

Correct Answer

Tension , Lower productivity , More absenteeism

Your Answer

Tension , Lower productivity , More absenteeism


Question

In India, Group incentive plans face problems like :-

Correct Answer

High norms of standard work , Illiterate workforce , Numerous slabs in rate

structure

Your Answer


structure


Question

Differential piece rate system is based on :-

Correct Answer

Dual rates for different efficiency levels

Your Answer

Dual rates for different efficiency levels

Select The Blank

Question

In the history of Indian IT industry, the year 2001-2002 will be remembered as

________.

Correct Answer

Year of lay-offs

Your Answer

Year of lay-offs


Question

The social structure of individual's life style is evident in the :-

Correct Answer

Urban society

Your Answer

Urban society


Question

Rate range can be developed in many ways, one usually adopted is :-

Correct Answer

Wage curve

Your Answer

Performance curve


Question

Documents useful for the purpose of wage analysis are :-

Correct Answer

Wage sheets , Payroll , Accounting registers

Your Answer

Wage sheets , Payroll , Accounting registers

Select The Blank

Question

There are many methods that an alive ________ management can creatively

develop for employees rendered redundant through little forethought.

Correct Answer

HRD

Your Answer

HRD

Select The Blank

Question

In Taylor differential piece rate system, high piece rate is applicable if ________.

Correct Answer

Output is above standard

Your Answer



Question

For a normal adult the net intake of calories should be :-

Correct Answer

2700

Your Answer

2600


Question

In Compensation plans the following are taken into account :-

Correct Answer

Cost of production , Reduction in expenses , Profits made

Your Answer

Reduction in expenses , Profits made , Cost of production

True/False

Question

IT jobs still remain the best paying jobs in the country.

Correct Answer

True

Your Answer

True


Question

Basic compensation systems are :-

Correct Answer

Time rate system , Piece rate system

Your Answer

Time rate system , Piece rate system , Bonus


Question

Various enactments that are applicable to employees of organization are :-

Correct Answer

Payment of Gratuity Act , Payment of Bonus Act , Employee's Provident Fund &

Misc. Provisions Act

Your Answer

Payment of Gratuity Act , Payment of Bonus Act , Employee's Provident Fund &

Misc. Provisions Act

Select The Blank

Question

Piece workers come under ________ class of workers.

Correct Answer

Semi - skilled

Your Answer

Unskilled


Question

Minimum wages are not to be fixed in an industry which employs less then how

many employees in the entire state?

Correct Answer

1000

Your Answer

900

True/False

Question

Within the factory group promotion is important.

Correct Answer

False

Your Answer

True


Question

In Payroll process, a Journal entry is treated as Control entry to :-

Correct Answer

Book deductions effected during the month , Book expenses for the month on

account of payroll , Make remittances to respective authorities

Your Answer

Give effect of unknown transactions in books of accounts , Book deductions effected

during the month , Book expenses for the month on account of payroll


Question

Co-partnership system tries to :-

Correct Answer

Eliminate friction between capital and labour

Your Answer

Gives fixed share to workers

True/False

Question

Indirect labour cost forms a part of overheads.

Correct Answer

True

Your Answer

True

Match The Following

Question

Correct Answer

Your Answer

Top managers

Non-financial benefits

Non-financial benefits

Workers

Piece-rate

Bonus

Salesmen

Commission

Commission

Managers

Bonus

Compensatory day-off

Select The Blank

Question

________ is that portion of Dearness Allowance which Government declares to be

paid for all purposes.

Correct Answer

Dearness Pay

Your Answer

Dearness Pay


Question

A good incentive scheme should have :-

Correct Answer

Elasticity , Parity , Less operational costs

Your Answer


Select The Blank

Question

________ is the unique code allotted to each & every employee in the organization.

Correct Answer

Employee No.

Your Answer

Employee No.


Question

Apart from salaries, IT employees are giving importance to :-

Correct Answer

Job content , Job security , Company image

Your Answer

Job security , Company image , Foreign trips


Question

Major components of compensation :-

Correct Answer

Salary , Basic salary , Consolidated salary

Your Answer

Salary , Basic salary , Consolidated salary

Match The Following

Question

Correct Answer

Your Answer

Under E.S.I., employer's contribution

0.0475

0.0475

Under E.S.I. employee's contribution

0.0175

0.0175

Employee Pension Scheme is 8.33% of

Employer

Employer

Employer & Employee Contribution under E.P.F.

0.12

0.12

Select The Blank

Question

The wages of workers not present at the time of payment disbursement should be

entered into ________.

Correct Answer

Undisbursed wage register

Your Answer

Undisbursed wage register


Question

Components of wage & salary are :-

Correct Answer

Basic wage , Overtime wage , Dearness allowance

Your Answer

Basic wage , Overtime wage , Dearness allowance


Question

Basic purpose of Wage and Salary administration is to establish and maintain an

equitable :-

Correct Answer

Wage and Salary structure

Your Answer

Wage and Salary structure

True/False

Question

Performance standards & norms for incentive payments should be set up high for

better results.

Correct Answer

False

Your Answer

False

True/False

Question

To maintain best manpower in the organization, Management Incentive Plan based

on the individual performance is necessary.

Correct Answer

True

Your Answer

True


Question

Salient features of profit-sharing are :-

Correct Answer

Agreement is voluntary , Payment may be in cash / stock of future credits ,

Computation on the basis of some agreed formula

Your Answer


Remuneration on the basis of efficiency


Question

In dotcom companies, there is :-

Correct Answer

Direct interaction with customers and client organizations , Reduction of capital cost

, Huge no of employees

Your Answer

Direct interaction with customers and client organizations , Reduction of capital cost

, Huge no of employees

Select The Blank

Question

________ had a decisive influence on the wage structure & wage level.

Correct Answer

Managerial attitude

Your Answer

Market focus

True/False

Question

Wage and salary administration should be controlled by some proper agency.

Correct Answer

True

Your Answer

False


Question

The human relations are determined by :-

Correct Answer

Human attitudes

Your Answer

Human attitudes


Question

If the ranking plan is used the grade consists of a specific number of :-

Correct Answer

Ranks

Your Answer

Points

Select The Blank

Question

________ is a source document for preparation of wage sheet.

Correct Answer

Attendance Register

Your Answer

Attendance Register

True/False

Question

Contribution to the Provident Funds are made at certain rate or certain percentage

of salary of employee, only by the Employer.

Correct Answer

False

Your Answer

False

True/False

Question

Incentive schemes should be installed right from beginning of production.

Correct Answer

False

Your Answer

True


Question

Time spent by same worker on various jobs is recorded on daily basis in :-

Correct Answer

Daily time sheet.

Your Answer

Job card.

LIST OF ATTEMPTED QUESTIONS AND ANSWERS


Question

In Payroll process, Cost of Living Index provides the basis for calculating :-

Correct Answer

D.A.

Your Answer

HRA


Question

In developmental phase, the dotcom companies concentrate on :-

Correct Answer

Building brand

Your Answer

Building brand


Question

Indirect compensation mainly acts as :-

Correct Answer

Maintenance factor

Your Answer

Motivating factor

Select The Blank

Question

compensation should be ________ efficiency & result .

Correct Answer

Directly proportional

Your Answer


Match The Following

Question

Correct Answer

Your Answer

Merric's multiple piece rate plan

Low piece rate for slow workers and high piece rate for higher production

Payment for time saved

Emerson efficiency plan

Gradual increase in remuneration based on efficiency

Gradual increase in remuneration based on efficiency

Co-partnership system

Sharing profits undertaking

Sharing profits undertaking

Taylor's differential piece-rate plan

No fear of wage cut

Low piece rate for slow workers and high piece rate for higher production


Question

The expenditure on medical treatment and stay abroad will be exempt only to the

extent permitted by :-

Correct Answer

Reserve Bank of India

Your Answer

State Government


Question

Extent of employees turnover depends upon :-

Correct Answer

Type of industry , Male to female ratio , Physical conditions within organisation

Your Answer



Question

At germination stage, to attract and retain talent, dotcom companies offer :

Correct Answer

Stock option

Your Answer

Stock option

True/False

Question

Wage & salary are also subject to a variety of legislation & in this context,

compliance with existing legislative measure is very important.

Correct Answer

True

Your Answer

True


Question

Rate of crime is very high in :-

Correct Answer

Industrial towns , Industrial cities , Industrial districts

Your Answer

Industrial towns , Industrial cities , Industrial districts


Question

The persons working in multinational companies occupying the higher positions in

hierarchy enjoy :-

Correct Answer

Lavish life-style

Your Answer

Expensive life-style


Question

When a dotcom company starts earning profits, promoters are focused on the

launch of:-

Correct Answer

IPO

Your Answer

New business deals


Question

For the valuation of rent free accommodation, 'Salary' includes :

Correct Answer

D A , Bonus , Education Allowance

Your Answer

Gratuity , D A , Bonus

True/False

Question

Provident fund is component of gross earnings.

Correct Answer

False

Your Answer

True

Select The Blank

Question

________ are assured of a stable amount of money.

Correct Answer

Employees

Your Answer

Employers

Select The Blank

Question

Generally, the strong & more powerful is the trade union, the ________ are the

wages.

Correct Answer

Higher

Your Answer

Higher


Question

Travel & Tourism agencies is an example of :-

Correct Answer

Hospitality industries

Your Answer

Hospitality industries


Question

In post IPO stage, dotcom company gives its employees :-

Correct Answer

Balanced total reward package

Your Answer

Stock options


Question

In recent times, in addition to stock options, employees of dotcom companies are

demanding :-

Correct Answer

Cash bonus

Your Answer

Cash bonus


Question

Dotcom companies were founded to go beyond :-

Correct Answer

Physical business

Your Answer

Physical business


Question

Salesmen are usually given incentives in the form of sales commission because of

:-

Correct Answer

Unsupervised nature of most sales work , Tradition in the market , Assumption that

incentives are needed to motivate salesman

Your Answer

Unsupervised nature of most sales work , Tradition in the market , Assumption that

incentives are needed to motivate salesman


Question

Following are causes of idle time of labour pertaining to administration :-

Correct Answer

Poor management , Management policy

Your Answer

Failure of electricity. , Poor management , Management policy

True/False

Question

Incentive payments should be made at the end of fiscal year.

Correct Answer

False

Your Answer

False


Question

Source documents for preparations of wages are :-

Correct Answer

Daily time sheet , Weekly time sheet. , Attendance register.

Your Answer

Daily time sheet , Weekly time sheet. , Attendance register.


Question

Incentive schemes suffer because of :-

Correct Answer

Tendency among workers to sacrifice quality for quantity , Rapid progress in

technology , Disregard for safety regulations by workers

Your Answer

Tendency among workers to sacrifice quality for quantity , Rapid progress in

technology , Disregard for safety regulations by workers


Question

Employees are paid incentives on 'Output' basis if :-

Correct Answer

Units of output can be measured , Direct relationship between employee efforts and

quantity of output , Jobs are standardised

Your Answer



True/False

Question

In piece rate & time rate combination, if payment is calculated on the basis of piece

rate guaranteed and if number of pieces fall below the minimum wages guaranteed,

he is paid by time rate (T).

Correct Answer

True

Your Answer

True

True/False

Question

Equal remuneration Act, 1976 discriminates on the ground of sex against women in

the matter of employment.

Correct Answer

False

Your Answer

False


Question

In metropolitan towns boys and girls are generally marring at the age of :-

Correct Answer

25 to 35

Your Answer

25 to 35


Question

In high profit making organisation compensation paid is relatively:-

Correct Answer

Higher

Your Answer

Higher

Select The Blank

Question

Gross Earnings - Deductions equals ________.

Correct Answer

Net Earnings

Your Answer

Net Earnings

Match The Following

Question

Correct Answer

Your Answer

Bonus to top management

Overall corporate results


Time' incentive plan

Delays in work are frequent

Unsupervised nature of job

Output' Incentive plan

Units of output are measurable


Commission' to salesmen


Group incentive


Question

If the employment is merely incidental to the exercise of a profession, the gains

from such employment would be :-

Correct Answer

Professional earnings

Your Answer

Professional earnings


Question

Which of the following are used to compensate major executives?

Correct Answer

Straight salaries , Bonuses , Profit sharing

Your Answer



Question

Article 43 reads: State shall endeavour to secure by suitable legislation to all :-

Correct Answer

Agricultural workers , Industrial , Working in a living wage

Your Answer


Select The Blank

Question

________ cost do not vary much in proportion to output or volume of production.

Correct Answer

Direct Labour

Your Answer

Direct Labour


Question

The characteristics of profit sharing plan are :-

Correct Answer

Profits are payable at long intervals , Payments to employees are uncertain ,

Payment is regarded sometimes as windfall gain

Your Answer




Question

Broad groups may be illustrated within manufacturing as :-

Correct Answer

Managerial , Clerical , Factory

Your Answer

Managerial , Clerical , Factory


Question

Wages of security men in a production unit comes under :-

Correct Answer

Indirect labour

Your Answer

Indirect expenses


Question

Wage Policy is of great concern to :-

Correct Answer

Labour Management & Govt.

Your Answer

Labour Management & Govt.

Select The Blank

Question

After deducting depreciation and initial or development rebate from profit, we arrive

at ________.

Correct Answer

Surplus profit

Your Answer

Surplus profit

True/False

Question

Education expenses on employee's family members paid or reimbursed by the

employer are not taxable.

Correct Answer

False

Your Answer

True

Select The Blank

Question

Casual workers comes under ________ class of workers.

Correct Answer

Unskilled

Your Answer

Unskilled

Select The Blank

Question

Employee's State Insurance Act, ________ is a pioneering measure in the field of

social insurance of our country.

Correct Answer

1948

Your Answer

1948

Select The Blank

Question

________ are also aid to executives a certain percentage of the profits.

Correct Answer

Bonuses

Your Answer

Bonuses

True/False

Question

Trade unions do affect rate of wages.

Correct Answer

True

Your Answer

False


Question

In the 60's salaries of Bargainable workers increased due to :-

Correct Answer

Success of Union

Your Answer

Success of Union

Select The Blank

Question

________ is that portion of Dearness Allowance which Government declares to be

paid for all purposes.

Correct Answer

Dearness Pay

Your Answer

P F contribution


Question

Differential piece rate system is suitable where :-

Correct Answer

Fixed costs are higher in proportion to veriable cost , It is possible to count

production accurately , There are standardised methods of production

Your Answer




Question

The aim of a wage & salary policy is :-

Correct Answer

To recognize the value of each job , Provide stability in earning

Your Answer

To recognize the value of each job , Provide stability in earning , Allow individual to

reach partial earning potential


Question

The total of direct material, direct labour, direct expenses is called :-

Correct Answer

Prime cost

Your Answer

Prime cost

True/False

Question

E.S.I. Act does make a distinction between technical and non-technical employees.

Correct Answer

False

Your Answer

True

Select The Blank

Question

Wages have at least ________ connotations from stand points of employers and

employees.

Correct Answer

2

Your Answer

4


Question

In graduated time rates system, if basic salary is Rs.2000 and dearness allowance

is 150% then total remuneration will be :-

Correct Answer

Rs.5000/-

Your Answer

Rs.5000/-


Question

Following is method of time booking :-

Correct Answer

Daily time sheet.

Your Answer

Time recording clock.


Question

Work study department is engaged in activities like determining :-

Correct Answer

Standard procedure

Your Answer

Standard procedure

Select The Blank

Question

Cost of employee welfare activities comes under ________ cost.

Correct Answer

Preventive

Your Answer

Direct labour


Question

Advantage of maintaining hand written register for attendance is :-

Correct Answer

Easy to operate.

Your Answer

Easy to operate.

True/False

Question

Wage & salary are also subject to a variety of legislation & in this context,

compliance with existing legislative measure is very important.

Correct Answer

True

Your Answer

True

Select The Blank

Question

In Taylor differential piece rate system, high piece rate is applicable if ________.

Correct Answer


Your Answer



Question

The expenditure on medical treatment and stay abroad will be exempt only to the

extent permitted by :-

Correct Answer

Reserve Bank of India

Your Answer

State Government

True/False

Question

Taylor differential piece rate system is difficult to understand and implement.

Correct Answer

False

Your Answer

False


Question


Correct Answer


Your Answer



Question

Following are causes of idle time of labour pertaining to production,

Correct Answer

Failure of electricity. , Breakdown of machinery

Your Answer

Failure of electricity. , Seasonal nature of demand. , Breakdown of machinery

True/False

Question

The payment of profit sharing plan is of uncertain nature because of uncertainty of

profits to the company.

Correct Answer

True

Your Answer

True

True/False

Question

Indirect labour cost are distributed on a basis of suitable proportion.

Correct Answer

True

Your Answer

True


Question

In Compensation plans the following are taken into account :-

Correct Answer

Cost of production , Reduction in expenses , Profits made

Your Answer

Cost of production , Reduction in expenses , Profits made , Losses incurred

Select The Blank

Question

In Gantt task plan of compensation, if output is below standard, then worker gets

payment as per ________.

Correct Answer

Time rate

Your Answer

Time rate

Select The Blank

Question

________ generated out of payroll system shows amounts of debits and credits.

Correct Answer

Journal entry

Your Answer

Journal entry

True/False

Question

If an employee pays fees for attending some management course, the fees can be

allowed for deduction from salary income.

Correct Answer

False

Your Answer

True


Question

Jobs are graded according to the relative skill :-

Correct Answer

Effort , Responsibility , Calculations

Your Answer

Effort , Responsibility , Calculations


Question


demanding :-

Correct Answer

Cash bonus

Your Answer

Annual increments


Question


Correct Answer



Your Answer


Payment is based on merit


Question

Following are the forms of the cost of replacement :-

Correct Answer

Cost of advertisement for recruitment , Cost of conducting interviews , Cost of

interruption in production

Your Answer


retirement benefits


Question

Towns are getting converted into cities and cities into :-

Correct Answer

Metro

Your Answer

Metro


Question

Aggregate costs change, if there is change in volume of output in case of :-

Correct Answer

Marginal cost

Your Answer

Standard costing


Question

For designing profit sharing plan, the company has to first :-

Correct Answer

Determine organisation's profit for year

Your Answer

Determine organisation's profit for year


Question

Cost of labour minute operation is available from :-

Correct Answer

Job cards.

Your Answer

Time study sheet.

Select The Blank

Question


of ________.

Correct Answer

Perks

Your Answer

Perks


Question

For adequate and effective internal check on disbursement of wages, these factors

are important :-

Correct Answer

Proper time recording , Proper record of output by workers , Well-defined terms of

remuneration and incentive schemes

Your Answer

Proper time recording , Proper record of output by workers , Proper knowledge of

workers language

Match The Following

Question

Correct Answer

Your Answer

Remuneration

Employees

Managers

Wage Differentials

Three categories

Employees

Mathematical tables

Calculations

Calculations

Elements of good Wage Plan

Two

Three categories

True/False

Question

Any other amenity or service excluded from the computation of wages by a general

or special order of appropriate Govt.

Correct Answer

False

Your Answer

True

Select The Blank

Question

There are ________ basic traditional system of job evaluation.

Correct Answer

4

Your Answer

4

Select The Blank

Question

The scanlon plan of profit sharing gives utmost importance to ________.

Correct Answer

Employee participation

Your Answer

Employee participation


Question

Group incentive plans may not become successful due to :-

Correct Answer

Unevenness of performance of different members of groups , Ill-feeling among

group members , No recognition for individual performance

Your Answer

Unevenness of performance of different members of groups , Ill-feeling among

group members , Unstable group production levels

Select The Blank

Question

________ is a source document for preparation of wage sheet.

Correct Answer

Attendance Register

Your Answer

Attendance Register

True/False

Question

Incentive schemes should be installed right from beginning of production.

Correct Answer

False

Your Answer

True

True/False

Question

Performance standards & norms for incentive payments should be set up high for

better results.

Correct Answer

False

Your Answer

True


Question


Correct Answer


Your Answer


Select The Blank

Question

After deducting depreciation and initial or development rebate from profit, we arrive

at ________.

Correct Answer

Surplus profit

Your Answer

Surplus profit

Match The Following

Question

Correct Answer

Your Answer

Bonus to top management



Time' incentive plan

Delays in work are frequent

Technological advancement

Output' Incentive plan



Commission' to salesmen




Question

Job analysis describes :-

Correct Answer

Duties , Responsibilities , Working conditions

Your Answer


True/False

Question

Surprise check on calculation & disbursement of payments is necessary to avoid

any fraud.

Correct Answer

True

Your Answer

True


Question

Time rate systems are :-

Correct Answer

Ordinary level , High wage level , Graduated time rates

Your Answer

Ordinary level , High wage level , Graduated time rates

Question : SEBI has taken an action to ban on Badla.

Answer : True

Question : As per the reports and the letter of intent filed with SEBI, what amount

is expected to be paid from the primary market during this year?

Answer:15000 crores

Question :SEBI cannot investigate the affairs of mutual funds and their trustees and

asset management companies.

Answer:False

Question :A mutual fund scheme shall not invest more than ________ of its NAV in

unrated debt by a single issuer.

Answer:0.1

Question :Securities offered in a pledge can change if a ________ agrees.

Answer:Pledgee

Question :A bidder can request for a transaction registration slip as the proof of his

having entered the bid.

Answer:True

Question :SENSEX is calculated using ________ method.

Answer:Market capitalization

Question :AA rated companies can raise ________ of its net worth.

Answer:2.5 times

Question :In the book building process pricing is determined on the basis of

________.

Answer:Investor feedback

Question :What is Sweat equity ?

Answer:Equity shares issued by the company to the employees , Issued to

directors at a discount , For consideration other than cash for providing

now

Question :An AMC fees :-

Answer:To be borne by the individual schemes

Question :What are the objectives of NHB?

Answer:To promote, establish, aid in promotion and support of housing

finance institutions , To make loans advances or render any other form of

financial assistance to focusing finance institutions , To guarantee financial

obligations

Question :What are participatory notes?

Answer:Instruments used by foreign funds , Instruments used but

investors not register with SEBI , Investors interested in taking exposure

in Indian securities

Question : When can an offer be withdrawn?

Answer: Statutory approvals refused , Sole acquirer being person died ,

Circumstances as in opinion of board

Question :MIBOR is a security. Derivatives based on this interest rate have legal

recognition under SCRA.

Answer:False

Question :For issues upto Rs. 50 crores the number of lead managers will not

exceed ________.

Answer:2

Question -----Correct Answer

Share buy back is a way of--Returning surplus cash to the shareholders

Dutch Auction ---Price of the Buy back is done by the shareholders

Open market purchases--No minimum price stipulation

Companies holding more than 90% equity --Can be delisted

Question :Under section 11 B of SEBI act how many issuers were debarred?

Answer:1

Question :The continuing growth in ________ was one of the factors that

contributed to the growth of credit rating.

Answer:Information technology

Question :What was the turning point in the working of Indian capital markets?

Answer:Establishment of NSE

Question :What do you understand by capital markets ?

Answer:Market for long term funds and investments in long term

instruments

Question :In February 2004, UTI sought permission of SEBI to prematurely close

________ schemes.

Answer:7

Question :What are the limitations of refinance facility?

Answer:Cannot exceed 5 times NOF , Not to exceed 50% of total Loan

funds of HFC's , Not to exceed 15 % of NOF of NHB

Question :What is the amount invested by the FII's in the Indian Capital market?

Answer:US$14 bn

Question :The buy back of shares by Indian corporates has been very successful in

India.

Answer:False

Question :The NSE Nifty index comprises of ________companies.

Answer:50

Question :Who is required to make a public announcement ?

Answer:Acquirer

Question :What are the norms for Approval of Housing finance companies by NHB?

Answer:Minimum paid up capital 1 crore , At least 2 directors , Any

appointment of auditors

Question :What are the major factors influencing portfolio decisions?

Answer:Investor characteristics , Liquidity needs and tax considerations ,

Investment and interest rate risk

Question :What was the reason for not introducing rolling settlements earlier in

India?

Answer:Lack of depositories


True/False

Question

An employee gets deduction to the extent, professional tax paid by him from

income chargeable under 'salaries'.

Correct Answer

True

Your Answer

True


Question

Following are the forms of the cost of replacement :-

Correct Answer


interruption in production

Your Answer

Cost of conducting interviews , Cost of interruption in production , Cost of

advertisement for recruitment


Question

Cost accounting department analyze payroll for the purpose of revealing :-

Correct Answer

Normal and abnormal idle time , Direct & indirect labour , Variance from budgeted

costs

Your Answer

Normal and abnormal idle time , Direct & indirect labour , Time standards

True/False

Question

With about 2-5 years of experience, an employee can move upto manager level

from executive level in IT industry.

Correct Answer

True

Your Answer

True


Question

Differential piece rate system is suitable where :-

Correct Answer



Your Answer




Question

Extent of employees turnover depends upon :-

Correct Answer


Your Answer



Question


demanding :-

Correct Answer

Cash bonus

Your Answer

Cash bonus


Question

The wage structure or grade is comprised of jobs of appropriately equal difficulty or

importance as determined by :-

Correct Answer

Job evaluation

Your Answer

Job evaluation

Match The Following

Question

Correct Answer

Your Answer

Cost accounting Dept.

Accumulation & classification all cost data

Accumulation & classification all cost data

Personnel Dept.

Selection & training of employees.

Preparation of drawings

Payroll Dept.

Maintain record of wage rate of each employee.

Maintain record of wage rate of each employee.

Engineering Dept.

Preparation of time & motion studies

Time keeping


Question

Salient features of profit-sharing are :-

Correct Answer



Your Answer




Question

Following are economic causes of idle time of labour :-

Correct Answer

Trade cycles. , Non availability of working capital.

Your Answer

Poor management. , Break down of machinery. , Trade cycles.

True/False

Question

Incentive schemes sometimes lead to jealousies and misunderstanding among the

workers.

Correct Answer

True

Your Answer

True


Question

Employees in the railways are entitled of payment of wages Act, 1936 who are

drawing wages and salaries below :-

Correct Answer

Rs. 1600/- a month

Your Answer

Rs. 1600/- a month

True/False

Question

Any contribution to pension, provident fund or a scheme of social security etc.

amounts to wages.

Correct Answer

False

Your Answer

True

Select The Blank

Question

Payment to out workers is done on ________ basis.

Correct Answer

Monthly

Your Answer

Daily


Question

For a normal adult the net intake of calories should be :-

Correct Answer

2700

Your Answer

2700


Question


Correct Answer

Payments to employees are uncertain , Payment is regarded sometimes as windfall

gain , Profits are payable at long intervals

Your Answer




Question

By using straight piece rate system of compensation output :-

Correct Answer

Increases

Your Answer

Increases


Question


Correct Answer


Your Answer


Select The Blank

Question

From economic and ________ point of view woman was subject to man.

Correct Answer

Social

Your Answer

Social


Question

Gate time keeping helps for :-

Correct Answer

Payroll preparations.

Your Answer

Ascertaining labour cost of each job.

Select The Blank

Question

Overtime payment given to the worker due to inefficiency of other department is

charged to ________.

Correct Answer

Responsible Department

Your Answer

Job

Select The Blank

Question

There are many methods that an alive ________ management can creatively

develop for employees rendered redundant through little forethought.

Correct Answer

HRD

Your Answer

Personnel

True/False

Question

Equal remuneration Act, 1976 discriminates on the ground of sex against women in

the matter of employment.

Correct Answer

False

Your Answer

False


Question

Level II in junior managers comprises of :-

Correct Answer

Engineers , Officers , Senior Engineers

Your Answer

Engineers , Officers , Senior Engineers


Question

Better production planning & control is facilitated through :-

Correct Answer

Job cards.

Your Answer

Daily time sheet.

Select The Blank

Question

Ratio of number of persons over 4 years of service at present to present total

employees is called ________

Correct Answer

Skill dilution index

Your Answer

Skill wastage index

Select The Blank

Question

Generally, the strong & more powerful is the trade union, the ________ are the

wages.

Correct Answer

Higher

Your Answer

Higher


Question


Correct Answer


Your Answer

Stock options

True/False

Question

Provident fund is component of gross earnings.

Correct Answer

False

Your Answer

True

Match The Following

Question

Correct Answer

Your Answer

Remuneration

Employees

Two

Wage Differentials

Three categories

Employees

Mathematical tables

Calculations

Calculations

Elements of good Wage Plan

Two

Four Categories

Select The Blank

Question

________ is the unique code allotted to each & every employee in the organization.

Correct Answer

Employee No.

Your Answer

Employee No.

True/False

Question

Monitory payment often act as motivators and satisfiers interdependently of other

job factors.

Correct Answer

True

Your Answer

True


Question

In high profit making organisation compensation paid is relatively:-

Correct Answer

Higher

Your Answer

Higher


Question

Components of deductions in salary are :-

Correct Answer

E.S.I. , Housing loan installment.

Your Answer

Basic salary. , E.S.I. , House rent allowance


Question

Long-term wage Incentive plans are useful, where :-

Correct Answer

Jobs are inter-related

Your Answer

Jobs are inter-related


Question

In piece rate and time rate combination system, if piece rate earning constantly fall

below minimum guaranteed payment, labour cost :-

Correct Answer

Increases

Your Answer

Decreases

True/False

Question

Rate of change in the working force of an organisation during a period of time is

known as employee turnover.

Correct Answer

True

Your Answer

True


Question

Reward may be money or promotion, but more likely it will be some pay-off -a

smile, and :-

Correct Answer

Acceptance by peer

Your Answer

Acceptance by peer


Question

Bonus, as the incentive to managers is determined :-

Correct Answer

By formula , By discretion used in allocation of bonus

Your Answer

By formula , By discretion used in allocation of bonus , By Board of Directors

Select The Blank

Question

________ refers to compensation programmes that allow employees to choose the

type and quantity of reward desired by him during the year.

Correct Answer

Cafeteria style compensation

Your Answer

Non-monetary rewards

True/False

Question

Overtime paid for uncontrollable reasons is charged to Profit and Loss Account.

Correct Answer

True

Your Answer

True

True/False

Question

Economic system does result in the concentration of wealth.

Correct Answer

False

Your Answer

True


Question

As industrialization taking place, the family values have :-

Correct Answer

Changed

Your Answer

Changed


Question

Objectives laid down by I.L.O. are :-

Correct Answer

Abolish malpractices , Abuse in wage payment , Promote Trade Union

Your Answer

Abolish malpractices , Abuse in wage payment , Promote Trade Union

Select The Blank

Question

Today there is strong competition for acquiring as much ________ as possible.

Correct Answer

Wealth

Your Answer

Wealth


Question

To make Scanlon plan successful, there should be :-

Correct Answer

Stable product lines and costs , Strong commitment to plan , Healthy labour

relations

Your Answer

Stable product lines and costs , Strong commitment to plan , Healthy labour

relations


True/False

Question

Surprise check on calculation & disbursement of payments is necessary to avoid

any fraud.

Correct Answer

True

Your Answer

True


Question

Dotcom companies were founded to go beyond :-

Correct Answer

Physical business

Your Answer

National boundaries

Select The Blank

Question

Piece workers come under ________ class of workers.

Correct Answer

Semi - skilled

Your Answer

Unskilled

Select The Blank

Question

Persons interested in enhancing their reputations and receiving recognition may

respond to ________.

Correct Answer

Verbal praise

Your Answer

Decision making authority

True/False

Question

Direct labour costs are included in cost of production of each unit.

Correct Answer

True

Your Answer

True


Question

In co-partnership Incentive system, there is division of :-

Correct Answer

Surplus profit

Your Answer

Surplus profit


Question

Wage & salary administration refers to the establishment and implementation of

sound policies and practices of employee :-

Correct Answer

Compensation

Your Answer

Compensation


Question

Remuneration paid for the service of the labour in production is :-

Correct Answer

Wage

Your Answer

Wage


Question

Which of the following are used to compensate major executives?

Correct Answer


Your Answer



Question

Carpenters engaged in cutting of wood in a furniture making shop is an example of

:-

Correct Answer

Direct labour

Your Answer

Direct labour

Select The Blank

Question

Employee's State Insurance Act, ________ is a pioneering measure in the field of

social insurance of our country.

Correct Answer

1948

Your Answer

1948


Question

Following are avoidable causes of employees turnover :-

Correct Answer

Unsatisfactory pay package , Absence of job satisfaction

Your Answer

Unsatisfactory pay package , Better prospects outside , Absence of job satisfaction

Match The Following

Question

Correct Answer

Your Answer

Francis A Walker

1840 - 1897

1849 - 1883

David Ricardo

1772 - 1823

1723 - 1790

Adam Smith

1723 - 1790

1728 - 1794

Karl Marx

1849 - 1883

1772 - 1823


Question

Marriages were supposed to be made in :-

Correct Answer

Heaven

Your Answer

Heaven


Question

Wage differentials are of following factors :-

Correct Answer


Your Answer



Question

In India, Group incentive plans face problems like :-

Correct Answer


structure

Your Answer

Numerous slabs in rate structure , High norms of standard work , Illiterate

workforce


Question

HR or Personnel department realises the relative worth of jobs by :-

Correct Answer

Job evaluation

Your Answer

Job evaluation


Question

Scanlon plan of profit sharing aims at :-

Correct Answer

Reduction of cost of operation of increased production , Sharing in gains , Workers

participation

Your Answer

Workers participation , Reduction of cost of operation of increased production ,

Sharing in gains

Select The Blank

Question

Ratio of number persons over 4 years of service at present to total employed 4

years ago is called ________

Correct Answer

Skill wastage index

Your Answer

Skill wastage index


Question

To minimize disparity in wages & levels, following act is passed :-

Correct Answer

Minimum wages Act

Your Answer

Minimum wages Act


Question

In developmental phase, the dotcom companies concentrate on :-

Correct Answer

Building brand

Your Answer

Launching IPO


Question

Employees are paid incentives on 'Output' basis if :-

Correct Answer



Your Answer



Select The Blank

Question

Compensation system should reduce ________.

Correct Answer

Employee turnover

Your Answer

Overheads


Question

Article 43 reads: State shall endeavour to secure by suitable legislation to all :-

Correct Answer


Your Answer


Select The Blank

Question

To perform a ________ function by way of determining the social status of

workers.

Correct Answer

Social

Your Answer

Social

True/False

Question

If workers do not understand relationship between performance and rewards,

incentive plans cannot motivate workers.

Correct Answer

True

Your Answer

True


Question

Sequence of operations for a job is clear in case of :-

Correct Answer

Job cards.

Your Answer

Daily time sheet.


Question

Level II in senior managers include or comprises of :-

Correct Answer

General Manager , Senior General Manager , Deputy General Manager

Your Answer

General Manager , Senior General Manager , Deputy General Manager


Question

Group incentive plans are best suited for :-

Correct Answer

Small work groups

Your Answer

Small work groups

Select The Blank

Question

compensation should be ________ efficiency & result .

Correct Answer


Your Answer


True/False

Question

IT jobs still remain the best paying jobs in the country.

Correct Answer

True

Your Answer

True

Match The Following

Question

Correct Answer

Your Answer

Good compensation system

Avoid exploitation

Avoid exploitation

High demand & Low supply

High compensation

High compensation

Equal work

Equal pay

Equal pay

Unskilled worker

Lower compensation

Lower compensation

Select The Blank

Question

If the idle time is controllable and normal, its cost is treated as ________ cost.

Correct Answer

Indirect

Your Answer

Direct

Select The Blank

Question


of ________.

Correct Answer

Perks

Your Answer

Perks

True/False

Question

Overtime paid because of inefficiency of other department is charged to the job.

Correct Answer

False

Your Answer

True


Question

Effectiveness of incentive system is ascertained with the help of :-

Correct Answer

Efficiency report.

Your Answer

Efficiency report.


Question

Demerits of time rate system at ordinary level are :-

Correct Answer

No distinction between efficient and inefficient workers at regards output , Increase

the cost of production in case of low productivity

Your Answer

No distinction between efficient and inefficient workers at regards output , Increase

the cost of production in case of low productivity , Simple to understand


Question

Job analysis describes :-

Correct Answer


Your Answer



Question

A good incentive scheme should have :-

Correct Answer


Your Answer


True/False

Question

Employee turnover rate focuses on stability of employee in the organisation.

Correct Answer

False

Your Answer

True


Question

Employees cost to the company includes :-

Correct Answer

Basic wages , Incentives

Your Answer

Cost of personnel administration , Basic wages , Dearness allowance

True/False

Question

The cost of time lost in strikes is charged to Profit & Loss Account.

Correct Answer

True

Your Answer

False


Question

When a dotcom company starts earning profits, promoters are focused on the

launch of:-

Correct Answer

IPO

Your Answer

New business deals


Question

The total of direct material, direct labour, direct expenses is called :-

Correct Answer

Prime cost

Your Answer

Prime cost

True/False

Question

Insurance of a worker is a part of gross salary.

Correct Answer

False

Your Answer

True


Question

At germination stage, to attract and retain talent, dotcom companies offer :

Correct Answer

Stock option

Your Answer

Stock option

Select The Blank

Question

The ________ criterion is usually regarded as an automatic minimum equity pay

criterion.

Correct Answer

Cost of living pay

Your Answer

Supply & demand of labour

True/False

Question If the rent paid by employee for his accommodation is equal to or more

than the value of rent-free house, the value of the concession in rent is 'NIL'.

Correct Answer True

Your Answer True


Question Employees are paid incentives on 'Time' basis if :-

Correct Answer Units of output are difficult to measure , Delays in work are

frequent , Quality is prime consideration

Your Answer Delays in work are frequent , Quality is prime consideration , Units of

output are difficult to measure

True/False

Question In piece rate & time rate combination, if payment is calculated on the

basis of piece rate guaranteed and if number of pieces fall below the minimum

wages guaranteed, he is paid by time rate (T).

Correct Answer True

Your Answer False


Question Every worker is ensured the minimum payment in :-

Correct Answer Piece rate & time rate combination

Your Answer Piece rate & time rate combination

Select The Blank

Question Wages have at least ________ connotations from stand points of

employers and employees.

Correct Answer 2

Your Answer 2

True/False

Question Taylor differential piece rate system is suitable for large scale production.

Correct Answer True

Your Answer True


Question In profit-sharing plan, the proportion of profits to be distributed among

the employees is determined :-

Correct Answer In advance

Your Answer In advance

Select The Blank

Question Inter-firm differentials reflect ________ wage levels of workers.

Correct Answer Relative

Your Answer Relative

Match The Following

Question Correct Answer Your Answer

High wage level system Incentive to worker to improve performance Fixed cost

decreases

Graduated time rate system Economical factor is consider Protect learners & slow

workers

Straight piece rate system Productivity improvement Productivity improvement

Piece rate system & time rate combination Protect learners & slow workers

Incentive to worker to improve performance


Question Following is not a function of personnel department :-

Correct Answer Time keeping.

Your Answer Time keeping.


Question Group incentive plans are best suited for :-

Correct Answer Small work groups

Your Answer Small work groups


Question To make Scanlon plan successful, there should be :-

Correct Answer Stable product lines and costs , Strong commitment to plan ,

Healthy labour relations

Your Answer Stable product lines and costs , Strong commitment to plan , Healthy

labour relations


Question Profit sharing, as an incentive plan, realizes these advantages :-

Correct Answer Higher profits , Increased efficiency , Climate for better employee

relations

Your Answer Higher profits , Increased efficiency , Climate for better employee

relations

Select The Blank

Question The wages of workers not present at the time of payment disbursement

should be entered into ________.

Correct Answer Undisbursed wage register

Your Answer Undisbursed wage register


Question In India, Group incentive plans face problems like :-

Correct Answer High norms of standard work , Illiterate workforce , Numerous slabs

in rate structure

Your Answer High norms of standard work , Illiterate workforce , Numerous slabs in

rate structure


Question Job analysis describes :-

Correct Answer Duties , Responsibilities , Working conditions

Your Answer Duties , Responsibilities , Working conditions


Question Production bonus is calculated on the basis of output norms decided

through :-

Correct Answer Job analysis , Time studies

Your Answer Job analysis , Time studies , Job enrichment


Question A type of group incentive plan is :-

Correct Answer Profit sharing scheme

Your Answer Profit sharing scheme


Question Components of wage & salary are :-

Correct Answer Basic wage , Overtime wage , Dearness allowance

Your Answer Basic wage , Overtime wage , Dearness allowance


Question Financial &/or quantitative statement prepared & approved prior to period

of time is called :-

Correct Answer Budget

Your Answer Budget


Question Following are economic causes of idle time of labour :-

Correct Answer Trade cycles. , Non availability of working capital.

Your Answer Poor management. , Trade cycles. , Non availability of working capital.


Question Forces that favour regional differences are :-

Correct Answer Low mobility , Lower skilled job , Sources of income

Your Answer Low mobility , Lower skilled job , Sources of income


Question Any imbalance in input-output relation in any incentive payment scheme

can result in :-

Correct Answer Tension , Lower productivity , More absenteeism

Your Answer Tension , Lower productivity , More absenteeism


Question A worker produces 50 units a week of 06 days and piece rate is Rs.2/- per

piece. Then his earning will be :-

Correct Answer Rs.100/-

Your Answer Rs.100/-


Question Monetary incentives imply :-

Correct Answer External motivation

Your Answer External motivation


Question Components of deductions in salary are :-

Correct Answer E.S.I. , Housing loan installment.

Your Answer E.S.I. , Housing loan installment.


Question For designing profit sharing plan, the company has to first :-

Correct Answer Determine organisation's profit for year

Your Answer Enter into agreement

True/False

Question The Scanlon plan of profit sharing is more effective where no of

participants is more than 1000.

Correct Answer False

Your Answer False


Question HR or Personnel department realises the relative worth of jobs by :-

Correct Answer Job evaluation

Your Answer Job evaluation

Match The Following


I. L. O. To bring appropriate payment systems Emphasizes need for legislation

Child Exploitation Article 39 Article 39

Wage Policy Increase economic welfare To bring appropriate payment systems

Article 43 Emphasizes need for legislation To avoid exploitation of labour


Question In co-partnership Incentive system, there is division of :-

Correct Answer Surplus profit

Your Answer Surplus profit

Select The Blank

Question Against the past practice of modest gradual increase applicable to all, with

only marginal additional to the ________ performer.

Correct Answer Good

Your Answer Good

True/False

Question Insurance of a worker is a part of gross salary.


Your Answer False

Select The Blank

Question ________ are assured of a stable amount of money.

Correct Answer Employees

Your Answer Employees

True/False

Question Employer's contribution to Superannuation Fund is taxable.


Your Answer False


Question Jobs are graded according to the relative skill :-

Correct Answer Effort , Responsibility , Calculations

Your Answer Effort , Responsibility


Question In Payroll process, Cost of Living Index provides the basis for calculating

:-

Correct Answer D.A.

Your Answer D.A.


Question Important aspect while determining pay ranges is to make general

adjustments in wage structure according to the :-

Correct Answer Price index number

Your Answer Competitors pay structure

True/False

Question If the car is used for office duty, only the value of the use of motor car is

taken as 'NIL'.

Correct Answer True

Your Answer True

True/False

Question In case of construction work / transportation / bidi rolling businesses,

internal check of disbursement of payment to workers is very important.

Correct Answer True

Your Answer True


Question To enable employees to participate in profit sharing, employees should

have :-

Correct Answer Worked for certain no. of years in company

Your Answer Worked for certain no. of years in company


Question Incentive plans fail due to :-

Correct Answer Unfair standards , Fear of rate cut , Lack of required tools / training

Your Answer Unfair standards , Fear of rate cut , Lack of required tools / training

Select The Blank

Question The scanlon plan of profit sharing gives utmost importance to ________.

Correct Answer Employee participation

Your Answer Employee participation

True/False

Question If workers do not understand relationship between performance and

rewards, incentive plans cannot motivate workers.

Correct Answer True

Your Answer True

Select The Blank

Question ________ is a source document for preparation of wage sheet.

Correct Answer Attendance Register

Your Answer Attendance Register


Question Salient features of profit-sharing are :-

Correct Answer Agreement is voluntary , Payment may be in cash / stock of future

credits , Computation on the basis of some agreed formula

Your Answer Agreement is voluntary , Payment may be in cash / stock of future

credits , Computation on the basis of some agreed formula


Question Time booking on job helps for :-

Correct Answer Estimating labour cost.

Your Answer Estimating labour cost.

LIST OF ATTEMPTED QUESTIONS AND ANSWERS 2nd

Select The Blank

Question During the research it was found that in certain cities prevailing wage rate

are ________where as organizational ability to pay is more.

Correct Answer Very low

Your Answer Very low

True/False

Question Within the factory group promotion is important.


Your Answer False


Question Perquisites or profits or any remuneration received from person other

than employer is taxable under the head :-

Correct Answer Income from other sources

Your Answer Income from other sources

Select The Blank

Question ________ under profit sharing contributes directly to an employee's

immediate economic gain.

Correct Answer Cash plan

Your Answer Cash plan

True/False

Question House rent allowance paid to a employee residing in his own house is not

exempt from tax.

Correct Answer True

Your Answer True

Select The Blank

Question Wage differentials are inter-industry, inter-firm and ________.

Correct Answer Inter area

Your Answer Inter area

True/False

Question Direct labour costs are included in cost of production of each unit.

Correct Answer True

Your Answer True


Question Time spent by same worker on various jobs is recorded on daily basis in :-

Correct Answer Daily time sheet.

Your Answer Daily time sheet.


Question Monetary incentive plans result in :-

Correct Answer Greater output per man-hour , Lower unit cost , Higher wages

Your Answer Greater output per man-hour , Lower unit cost , Higher wages

Select The Blank

Question Today there is strong competition for acquiring as much ________ as

possible.

Correct Answer Wealth

Your Answer Wealth

Select The Blank

Question Executives are compensated for the various ________ incurred by them.

Correct Answer Expenses

Your Answer Expenses


Question Broad groups may be illustrated within manufacturing as :-

Correct Answer Managerial , Clerical , Factory

Your Answer Managerial , Clerical , Factory


Question Bonus, as the incentive to managers is determined :-

Correct Answer By formula , By discretion used in allocation of bonus

Your Answer By formula , By discretion used in allocation of bonus , By Board of

Directors

Select The Blank

Question ________ generated out of payroll system shows amounts of debits and

credits.

Correct Answer Journal entry

Your Answer Bills entry

True/False

Question Performance standards & norms for incentive payments should be set up

high for better results.


Your Answer True

Match The Following


Merric's multiple piece rate plan Low piece rate for slow workers and high piece rate

for higher production Sharing profits undertaking

Emerson efficiency plan Gradual increase in remuneration based on efficiency Bonus

to the group

Co-partnership system Sharing profits undertaking No fear of wage cut

Taylor's differential piece-rate plan No fear of wage cut Gradual increase in

remuneration based on efficiency


Question Following is method of time booking :-

Correct Answer Daily time sheet.

Your Answer Time recording clock.


Question Work study department is engaged in activities like determining :-

Correct Answer Standard procedure

Your Answer Labour cost

Match The Following


Cost accounting Dept. Accumulation & classification all cost data Selection &

training of employees.

Personnel Dept. Selection & training of employees. Selection & training of

employees.

Payroll Dept. Maintain record of wage rate of each employee. Maintain record of

wage rate of each employee.

Engineering Dept. Preparation of time & motion studies Preparation of time &

motion studies


Question Following are unavoidable causes of employees turnover :-

Correct Answer Retirement , Marriage

Your Answer Retirement , Marriage

True/False

Question The cost of time lost in strikes is charged to Profit & Loss Account.

Correct Answer True

Your Answer True

Select The Blank

Question Ratio of number persons over 4 years of service at present to total

employed 4 years ago is called ________

Correct Answer Skill wastage index

Your Answer Skill wastage index


Question Following are causes of idle time of labour pertaining to production,

Correct Answer Failure of electricity. , Breakdown of machinery

Your Answer Failure of electricity. , Seasonal nature of demand. , Breakdown of

machinery


Question Disadvantage of maintaining hand written register for attendance is :-

Correct Answer Depends upon honesty.

Your Answer Depends upon honesty.

True/False

Question Salary is still the only or chief motivator for IT employees.


Your Answer True

Select The Blank

Question Cost of time spent on conducting interviews & selecting a candidate for

________ is called Replacement cost.

Correct Answer Replacement

Your Answer Replacement

True/False

Question The cost of living pay criterion is usually regarded as an automatic

minimum equity pay criterion

Correct Answer True

Your Answer False

True/False

Question Incentive schemes sometimes lead to jealousies and misunderstanding

among the workers.

Correct Answer True

Your Answer True


Question Article 43 reads: State shall endeavour to secure by suitable legislation to

all :-

Correct Answer Agricultural workers , Industrial , Working in a living wage

Your Answer Agricultural workers , Industrial , Working in a living wage


Question Advantages of having several pay ranges for each organisations are :-

Correct Answer The management could take a more flexible stance with respect to

the labour market , It made it easy to attract experienced employees from other

organisations , It helped to ensure that there was an overlap between the pay rates

and those prevailing in the labour market

Your Answer The management could take a more flexible stance with respect to the

labour market , It made it easy to attract experienced employees from other

organisations , It helped to ensure that there was an overlap between the pay rates

and those prevailing in the labour market

True/False

Question If an employee pays fees for attending some management course, the

fees can be allowed for deduction from salary income.


Your Answer False


Question In profit-sharing plan, employees :-

Correct Answer Work more diligently , Try to achieve higher profits , Fulfill entirely

their responsibilities

Your Answer Work more diligently , Try to achieve higher profits , Fulfill entirely

their responsibilities

Select The Blank

Question ________ of payment recognizes that individuals are concerned about the

money paid to them and also the relationship of this amount to what others are

paid.

Correct Answer Equity approach

Your Answer Equity approach


Question The total of direct & indirect material, labour & expenses is called :-

Correct Answer Total cost of production

Your Answer Prime cost


Question Profit sharing plans can be on :-

Correct Answer Industry basis , Locality basis , Unit basis

Your Answer Industry basis , Locality basis , Unit basis

Select The Blank

Question Persons interested in enhancing their reputations and receiving

recognition may respond to ________.

Correct Answer Verbal praise

Your Answer Verbal praise


Question For the valuation of rent free accommodation, 'Salary' includes :

Correct Answer D A , Bonus , Education Allowance

Your Answer D A , Education Allowance


Question Towns are getting converted into cities and cities into :-

Correct Answer Metro

Your Answer Metro


Question Scanlon plan of profit sharing aims at :-

Correct Answer Workers participation , Reduction of cost of operation of increased

production , Sharing in gains

Your Answer Workers participation , Reduction of cost of operation of increased

production , Sharing in gains


Question Indirect compensation mainly acts as :-

Correct Answer Maintenance factor

Your Answer Maintenance factor

Select The Blank

Question Overtime payment given to the worker due to general pressure of work is

treated as ________ cost.

Correct Answer Indirect

Your Answer Indirect


Question Which of the following are used to compensate major executives?

Correct Answer Straight salaries , Bonuses , Profit sharing

Your Answer Straight salaries , Bonuses , Profit sharing


Question Long-term wage Incentive plans are useful, where :-

Correct Answer Jobs are inter-related

Your Answer Jobs are inter-related


Question Group incentive payments are :-

Correct Answer Less than individual ones

Your Answer Less than individual ones


Question The criterion, that means, wages paid should be adequate to enable an

employee to maintain himself and his family at a reasonable level of existence is :-

Correct Answer The living wage

Your Answer The living wage


Question According to the thinking and beliefs of these young persons, the major

need filled by marriage is biological and this can be easily satisfied out of :-

Correct Answer Wedlock

Your Answer Wedlock

True/False

Question The payment of profit sharing plan is of uncertain nature because of

uncertainty of profits to the company.

Correct Answer True

Your Answer True

LIST OF ATTEMPTED QUESTIONS AND ANSWERS 1st


Question The wage and salary administration is concerned with the financial aspect

of need, reward and :-

Correct Answer Motivation

Your Answer Motivation


Question Documents used for wage analysis are :-

Correct Answer Job cards , Wage sheets

Your Answer Job cards , Wage sheets


Question Basic purpose of Wage and Salary administration is to establish and

maintain an equitable :-

Correct Answer Wage and Salary structure

Your Answer Compensation structure

True/False

Question IT jobs still remain the best paying jobs in the country.

Correct Answer True

Your Answer True

Match The Following


Francis A Walker 1840 - 1897 1772 - 1823

David Ricardo 1772 - 1823 1849 - 1883

Adam Smith 1723 - 1790 1723 - 1790

Karl Marx 1849 - 1883 1840 - 1897

True/False

Question Many companies have chosen some what shady reimbursement or

perquisite in order to contain the overall cost in the assumption of being non

taxable.

Correct Answer True

Your Answer True


Question Differential piece rate system is suitable where :-

Correct Answer Fixed costs are higher in proportion to veriable cost , It is possible

to count production accurately , There are standardised methods of production

Your Answer Fixed costs are higher in proportion to veriable cost , It is possible to

count production accurately , There are standardised methods of production


Question Dotcom companies were founded to go beyond :-

Correct Answer Physical business

Your Answer National boundaries


Question Salesmen are usually given incentives in the form of sales commission

because of :-

Correct Answer Unsupervised nature of most sales work , Tradition in the market ,

Assumption that incentives are needed to motivate salesman

Your Answer Unsupervised nature of most sales work , Tradition in the market ,

Assumption that incentives are needed to motivate salesman


Question Following are avoidable causes of employees turnover :-

Correct Answer Unsatisfactory pay package , Absence of job satisfaction

Your Answer Unsatisfactory pay package , Better prospects outside , Absence of job

satisfaction


Question In dotcom companies, there is :-

Correct Answer Direct interaction with customers and client organizations ,

Reduction of capital cost , Huge no of employees

Your Answer Direct interaction with customers and client organizations , Reduction

of capital cost , Huge no of employees


Question Employees are paid incentives on 'Output' basis if :-

Correct Answer Units of output can be measured , Direct relationship between

employee efforts and quantity of output , Jobs are standardised

Your Answer Units of output can be measured , Direct relationship between

employee efforts and quantity of output , Jobs are standardised

True/False

Question Rate of change in the working force of an organisation during a period of

time is known as employee turnover.

Correct Answer True

Your Answer True

True/False

Question Compensation given to an employee on termination or dismissal is

considered as Salary Income.

Correct Answer True

Your Answer False

Select The Blank

Question The nature and extent of wage differential are conditioned by a ________.

Correct Answer Set of factors

Your Answer Set of conditions


Question When a dotcom company starts earning profits, promoters are focused on

the launch of:-

Correct Answer IPO

Your Answer IPO

Select The Blank

Question ________ is that portion of Dearness Allowance which Government

declares to be paid for all purposes.

Correct Answer Dearness Pay

Your Answer Dearness Pay

Select The Blank

Question If the idle time is controllable and normal, its cost is treated as ________

cost.

Correct Answer Indirect

Your Answer Direct


Question As industrialization taking place, the family values have :-

Correct Answer Changed

Your Answer Changed

Select The Blank

Question ________ are also aid to executives a certain percentage of the profits.

Correct Answer Bonuses

Your Answer Bonuses


Question Wages of security men in a production unit comes under :-

Correct Answer Indirect labour

Your Answer Indirect labour

True/False

Question Time booking helps to ascertain direct and indirect labour costs.

Correct Answer True

Your Answer False


Question Characteristic of a good compensation system is :-

Correct Answer Higher the efficiency of worker, higher is compensation.

Your Answer Higher the efficiency of worker, higher is compensation.

True/False

Question To maintain best manpower in the organization, Management Incentive

Plan based on the individual performance is necessary.

Correct Answer True

Your Answer True

Select The Blank

Question Payment to out workers is done on ________ basis.

Correct Answer Monthly

Your Answer Piece rate.


Question Expenses incurred by business for packing & packaging, advertisement,

sales promotion is called :-

Correct Answer Overheads

Your Answer Overheads

True/False

Question With about 2-5 years of experience, an employee can move upto manager

level from executive level in IT industry.

Correct Answer True

Your Answer True


Question Variance analysis is done in case of :-

Correct Answer Standard costing

Your Answer Standard costing

Select The Blank

Question Compensation system should reduce ________.

Correct Answer Employee turnover

Your Answer Employee turnover

True/False

Question Economic system does result in the concentration of wealth.


Your Answer True

Select The Blank

Question ________ provides benefits at the time of retirement/ death / following

disability of worker.

Correct Answer Deferred plan

Your Answer Deferred plan


Question The expenditure on remuneration of workers/employees responsible for

conversion of raw material into finished products is called :-

Correct Answer Direct labour

Your Answer Direct expenses


Question If the employment is merely incidental to the exercise of a profession, the

gains from such employment would be :-

Correct Answer Professional earnings

Your Answer Professional earnings

Select The Blank

Question Leave pay of current year is treated as ________.

Correct Answer Direct Expenses

Your Answer Direct Expenses

True/False

Question Group incentive system is more widely prevalent in the Indian industry

than the system of individual incentive.

Correct Answer True

Your Answer True


Question The wage structure or grade is comprised of jobs of appropriately equal

difficulty or importance as determined by :-

Correct Answer Job evaluation

Your Answer Job evaluation

Select The Blank

Question ________ is financial / quantitative statement prepared & approved prior

to a period of time.

Correct Answer Budget

Your Answer Budget


Question Wage differentials are of following factors :-

Correct Answer Difference in labour efficiency , Social esteem , Occupation

Your Answer Difference in labour efficiency , Social esteem , Occupation


Question Objectives laid down by I.L.O. are :-

Correct Answer Abolish malpractices , Abuse in wage payment , Promote Trade

Union

Your Answer Abolish malpractices , Abuse in wage payment , Promote Trade Union


Question Level II in junior managers comprises of :-

Correct Answer Engineers , Officers , Senior Engineers

Your Answer Engineers , Officers , Senior Engineers

Match The Following


Bonus to top management Overall corporate results Overall corporate results

Time' incentive plan Delays in work are frequent Unsupervised nature of job

Output' Incentive plan Units of output are measurable Units of output are

measurable

Commission' to salesmen Unsupervised nature of job Group incentive


Question Major components of compensation :-

Correct Answer Salary , Basic salary , Consolidated salary

Your Answer Salary , Consolidated salary


Question Incentive schemes suffer because of :-

Correct Answer Tendency among workers to sacrifice quality for quantity , Rapid

progress in technology , Disregard for safety regulations by workers

Your Answer Tendency among workers to sacrifice quality for quantity , Rapid

progress in technology , Disregard for safety regulations by workers


Question Aspects which were considered while determining pay ranges are :-

Correct Answer Maintain adequate difference between supervisors & subordinates ,

Attention must be given to handling upward changes in wage structure

Your Answer Maintain adequate difference between supervisors & subordinates ,

Attention must be given to handling upward changes in wage structure


Question In recent times, in addition to stock options, employees of dotcom

companies are demanding :-

Correct Answer Cash bonus

Your Answer Cash bonus

Select The Blank

Question Life and Medical insurance or reimbursement of medical bills is considered

as a part of ________.

Correct Answer Perks

Your Answer Social security

uestion Documents used for wage analysis are :-

Answer Wage sheets , Job cards

Question Indirect compensation mainly acts as :-

Answer Maintenance factor

Question The lacuna which led to the introduction of 'Employee's

Deposit Linked Insurance Scheme' did not have effect from :-

Answer 7th of March 1971 , 3rd of March 1971 , 2nd of March 1971

Question Source documents for preparations of wages are :-

Answer Daily time sheet , Weekly time sheet. , Attendance register.

Question Following are causes of idle time of labour pertaining to

administration :-

Answer Poor management , Management policy

Answer Managerial attitude

Unskilled worker Lower compensation Lower compensation

Good compensation system Avoid exploitation Higher skills

High demand & Low supply High compensation High compensation

Equal work Equal pay Equal pay

Question Employees in the railways are entitled of payment of wages

Act, 1936 who are drawing wages and salaries below :-

Answer Rs. 1600/- a month

Question In the case of salary income, it is important that there

should be a :-

Answer Relation of employer and employee

Question Disadvantage of maintaining hand written register for

attendance is :-

Answer Depends upon honesty.

Question Ratio of number of persons over 4 years of service at

present to present total employees is called ________

Answer Skill dilution index

Question ________ is a source document for preparation of wage sheet.

Answer Attendance Register

Question Financial &/or quantitative statement prepared & approved

prior to period of time is called :-

Answer Budget

Question Group incentive payments are :-

Answer Less than individual ones

Question In profit-sharing plan, employees :-

Answer Work more diligently , Try to achieve higher profits ,

Fulfill entirely their responsibilities

Question Every worker is ensured the minimum payment in :-

Answer Piece rate & time rate combination

Question In the history of Indian IT industry, the year 2001-2002

will be remembered as ________.

Answer Year of lay-offs

Question Carpenters engaged in cutting of wood in a furniture making

shop is an example of :-

Answer Direct labour

Question Time rate systems are :-

Answer Ordinary level , High wage level , Graduated time rates

Question After deducting depreciation and initial or development

rebate from profit, we arrive at ________.

Answer Surplus profit

Question Any other amenity or service excluded from the computation

of wages by a general or special order of appropriate Govt.

Answer False

Question Taylor differential piece rate system is difficult to

understand and implement.

Answer False


Answer Units of output can be measured , Direct relationship

between employee efforts and quantity of output , Jobs are standardised

Your Answer Units of output can be measured , Direct relationship


Question Wage differentials have been classified into ________

categories.

Answer 3

Question Compensation policy does not need criteria for promotions.

Answer False

Question ________ is financial / quantitative statement prepared &

approved prior to a period of time.

Answer Budget

Question Halsey Premium plan is a combination of the day wage & piece

wage in modified form.

Answer True

Question Employees are paid incentives on 'Time' basis if :-

Answer Units of output are difficult to measure , Delays in work

are frequent , Quality is prime consideration

Question In profit-sharing plan, the proportion of profits to be

distributed among the employees is determined :-

Answer In advance

Question Direct labour cost varies in proportion to output of

production.

Answer False

Question First to lay down the guidelines for fixation of Minimum

Wages was :-

Answer Indian Labour Conference

Question Within the factory group promotion is important.

Answer False

Question There are many methods that an alive ________ management can

creatively develop for employees rendered redundant through little

forethought.

Answer HRD

Question Wage structure is made flexible according to the changes in

the price level and ________.

Answer Working efficiency

Question Remuneration paid for the service of the labour in

production is :-

Answer Wage

Question Various enactments that are applicable to employees of

organization are :-

Answer Payment of Gratuity Act , Payment of Bonus Act , Employee's

Provident Fund & Misc. Provisions Act

Question Salary is still the only or chief motivator for IT

employees.

Answer False

Question Time rate system at ordinary level is suitable where :-

Answer Quality of output is of great importance , Quantitative

measurement of work is not possible , Production unit is small

Question If the same or about the same general rates of wages were

not paid to the employees as were paid by the organisation's competitors, it

would not be able to attract and maintain a sufficient quantity and quality

of manpower.

Answer False

Question Which of the following are used to compensate major

executives?

Answer Straight salaries , Bonuses , Profit sharing

Question Direct labour costs are included in cost of production of

each unit.

Answer True

Wage disbursement Actual payment of remuneration Payment on vouchers

Attendance Register Input to payroll process Actual payment of

remuneration

Pay slips Output of payroll process Output of payroll process

Journal entry Amounts of debit & credit Amounts of debit & credit

Question ________ cost do not vary much in proportion to output or

volume of production.

Answer Direct Labour

Question The total of direct material, direct labour, direct expenses

is called :-

Answer Prime cost

Question If workers do not understand relationship between

performance and rewards, incentive plans cannot motivate workers.

Answer True

Question Overtime payment given to the worker for completing work

before scheduled date art the instruction of buyer is treated as ________

cost

Answer Direct

Question Contribution to the P.F. have to be remitted along with the

challan for Account No.:-

Answer 2 , 21 , 10

Question Surprise check on calculation & disbursement of payments is

necessary to avoid any fraud.

Answer True


Answer Physical business

Question Piece workers come under ________ class of workers.

Answer Semi - skilled

Question Persons interested in enhancing their reputations and

receiving recognition may respond to ________.

Answer Verbal praise

Question Direct labour costs are included in cost of production of

each unit.

Answer True

Question In co-partnership Incentive system, there is division of :-

Answer Surplus profit

Question Wage & salary administration refers to the establishment and

implementation of sound policies and practices of employee :-

Answer Compensation

Question Remuneration paid for the service of the labour in

production is :-

Answer Wage


executives?


Question Carpenters engaged in cutting of wood in a furniture making

shop is an example of :-

Answer Direct labour

Question Employee's State Insurance Act, ________ is a pioneering

measure in the field of social insurance of our country.

Answer 1948

Question Following are avoidable causes of employees turnover :-

Answer Unsatisfactory pay package , Absence of job satisfaction

Francis A Walker 1840 - 1897 1849 - 1883

David Ricardo 1772 - 1823 1723 - 1790

Adam Smith 1723 - 1790 1728 - 1794

Karl Marx 1849 - 1883 1772 - 1823

Question Marriages were supposed to be made in :-

Answer Heaven


Answer Difference in labour efficiency , Social esteem , Occupation

Question In India, Group incentive plans face problems like :-

Answer High norms of standard work , Illiterate workforce ,

Numerous slabs in rate structure

Question HR or Personnel department realises the relative worth of

jobs by :-

Answer Job evaluation

Question Scanlon plan of profit sharing aims at :-

Answer Reduction of cost of operation of increased production ,

Sharing in gains , Workers participation

Question Ratio of number persons over 4 years of service at present

to total employed 4 years ago is called ________

Answer Skill wastage index

Question To minimize disparity in wages & levels, following act is

passed :-

Answer Minimum wages Act

Question In developmental phase, the dotcom companies concentrate on

:-

Answer Building brand


Answer Units of output can be measured , Direct relationship


Question Compensation system should reduce ________.

Answer Employee turnover

Question Article 43 reads: State shall endeavour to secure by

suitable legislation to all :-

Answer Agricultural workers , Industrial , Working in a living wage

Question To perform a ________ function by way of determining the

social status of workers.

Answer Social



Answer True

Question Sequence of operations for a job is clear in case of :-

Answer Job cards.

Question Level II in senior managers include or comprises of :-

Answer General Manager , Senior General Manager , Deputy General

Manager

Question Group incentive plans are best suited for :-

Answer Small work groups

Question compensation should be ________ efficiency & result .

Answer Directly proportional


Answer True

Good compensation system Avoid exploitation Avoid exploitation

High demand & Low supply High compensation High compensation

Equal work Equal pay Equal pay

Unskilled worker Lower compensation Lower compensation

Question If the idle time is controllable and normal, its cost is

treated as ________ cost.

Answer Indirect

Question Life and Medical insurance or reimbursement of medical bills

is considered as a part of ________.

Answer Perks

Question Overtime paid because of inefficiency of other department is

charged to the job.

Answer False

Question Effectiveness of incentive system is ascertained with the

help of :-

Answer Efficiency report.

Question Demerits of time rate system at ordinary level are :-

Answer No distinction between efficient and inefficient workers at

regards output , Increase the cost of production in case of low productivity

Question Job analysis describes :-

Answer Duties , Responsibilities , Working conditions

Question A good incentive scheme should have :-

Answer Elasticity , Parity , Less operational costs

Question Employee turnover rate focuses on stability of employee in

the organisation.

Answer False

Question Employees cost to the company includes :-

Answer Basic wages , Incentives

Question The cost of time lost in strikes is charged to Profit & Loss

Account.

Answer True

Question When a dotcom company starts earning profits, promoters are

focused on the launch of:-

Answer IPO

Question The total of direct material, direct labour, direct expenses

is called :-

Answer Prime cost


Answer False

Question At germination stage, to attract and retain talent, dotcom

companies offer :

Answer Stock option

Question The ________ criterion is usually regarded as an automatic

minimum equity pay criterion.

Answer Cost of living pay

Question Standards of efficiency should be fixed by taking into

consideration ________ worker & Normal working conditions.

Answer Normal

Question In graduated time rates system, if basic salary is Rs.2000

and dearness allowance is 150% then total remuneration will be :-

Answer Rs.5000/-

Question Job evaluation is the output provided by :-

Answer Job Analysis

Question The persons working in multinational companies occupying the

higher positions in hierarchy enjoy :-

Answer Lavish life-style

Question Incentive schemes sometimes lead to jealousies and

misunderstanding among the workers.

Answer True


Answer Physical business





Answer True

Question In developmental phase, the dotcom companies concentrate on

:-

Answer Building brand

Question Salesmen are usually given incentives in the form of sales

commission because of :-

Answer Unsupervised nature of most sales work , Tradition in the

market , Assumption that incentives are needed to motivate salesman

Question The wage and salary administration is concerned with the

financial aspect of need, reward and :-

Answer Motivation

Question Gross Earnings - Deductions equals ________.

Answer Net Earnings


Answer False

Question Organization's ability to pay, determines ________.

Answer Wage level


Answer Promote Trade Union , Abolish malpractices , Abuse in wage

payment

Question Article 43 reads: State shall endeavour to secure by

suitable legislation to all :-

Answer Agricultural workers , Industrial , Working in a living wage

Question Following are the forms of the cost of replacement :-

Answer Cost of advertisement for recruitment , Cost of conducting

interviews , Cost of interruption in production

Question Main features of society are :-

Answer Domination of machines , Exploitation of workers , Poor

working conditions

Question In Compensation plans the following are taken into account

:-

Answer Cost of production , Reduction in expenses , Profits made

Question ________ had a decisive influence on the wage structure &

wage level.

Answer Managerial attitude

Question The approach of managerial / executive staff towards the

perquisites has changed since last :-

Answer 10 years , 9 years , 8 years

Question Aspects which were considered while determining pay ranges

are :-

Answer Maintain adequate difference between supervisors &

subordinates , Attention must be given to handling upward changes in wage

structure

Question If the rent paid by employee for his accommodation is equal

to or more than the value of rent-free house, the value of the concession in

rent is 'NIL'.

Answer True

Question Gradewise flat allowances are also being considered

generally except where tax exemption benefit are still available.

Answer True

Question A job is rated in order to determine its value relative to

all the others jobs in organization which are subject to :-

Answer Evaluation

Question In marginal costing costs are classified as:-

Answer Fixed & Variable

Question Indirect labour cost forms a part of overheads.

Answer True


executives?


Question If classification system is used, the jobs are already

categorized into grade or :-

Answer Class

Question Production bonus is calculated on the basis of output norms

decided through :-

Answer Job analysis , Time studies

Question Cost of employee welfare activities comes under ________

cost.

Answer Preventive

Ranking System Ranks Ranks

Wage and salary administration Compensation Compensation

Remuneration paid Wage Wage

Classification System Class Class

Question Production planning includes :-

Answer Product engineering.

Question Incentive schemes sometimes lead to jealousies and

misunderstanding among the workers.

Answer True

Question Following are economic causes of idle time of labour :-

Answer Trade cycles. , Non availability of working capital.

Question Reward may be money or promotion, but more likely it will be

some pay-off -a smile, and :-

Answer Acceptance by peer

Question The cost of time lost in strikes is charged to Profit & Loss

Account.

Answer True

Question House rent allowance paid to a employee residing in his own

house is not exempt from tax.

Answer True

Question Today there is strong competition for acquiring as much

________ as possible.

Answer Wealth

Question Payment is done on the basis of units of output, incase of

________ workers.

Answer Piece

Question Ratio of number of persons over 4 years of service at

present to present total employees is called ________

Answer Skill dilution index

Question In post IPO stage, dotcom company gives its employees :-

Answer Balanced total reward package

Question Factors not related to money can also serve as ________.

Answer Attention seekers

Question In material costing ________ Costs are written at to

Marginal profit & loss A/c.

Answer Fixed

Employee turnover Separation rate Difficult to control

Direct labour cost Difficult to control Fixed costs

Indirect labour cost Cannot be easily identified with product

Indirect expenses.

Stability index Skill dilution index Skill dilution index

Question One worker is working under piece rate & time rate

combination system of compensation. He has worked in a week of 06 days

consisting of 48 hours. His hourly rate is Rs.2/- per piece. His output for

the week is 40 units. What will be his earning ?

Answer Rs.96/-

Question If the employment is merely incidental to the exercise of a

profession, the gains from such employment would be :-

Answer Professional earnings

Question Group incentive system is more widely prevalent in the

Indian industry than the system of individual incentive.

Answer True


Answer True

Question ________ is financial / quantitative statement prepared &

approved prior to a period of time.

Answer Budget

Question Consideration for wage and salary administration are :-

Answer Job requirement

Question Person working in MNC's occupying higher positions devote

most of their time for their :-

Answer Employment & job

Question Components of wage & salary are :-

Answer Basic wage , Overtime wage , Dearness allowance


Answer External motivation

Question The incentive plan designed for the group based on group's

performance is called :-

Answer Long-term wage incentive plan

Question Taylor differential piece rate system is suitable for large

scale production.

Answer True

Question Salesmen are usually given incentives in the form of sales

commission because of :-

Answer Unsupervised nature of most sales work , Tradition in the

market , Assumption that incentives are needed to motivate salesman

Question ________ of payment recognizes that individuals are

concerned about the money paid to them and also the relationship of this

amount to what others are paid.

Answer Equity approach

Question Wage Policy is not of great concern to labour, management

and Govt.

Answer False

Question To perform a ________ function by way of determining the

social status of workers.

Answer Social

Question Life and Medical insurance or reimbursement of medical bills

is considered as a part of ________.

Answer Perks

Question Extent of employees turnover depends upon :-

Answer Physical conditions within organisation , Type of industry ,

Male to female ratio

Question Performance standards & norms for incentive payments should

be set up high for better results.

Answer False

Question E.S.I. Act aims at providing for certain cash benefits to

employees in case of :-

Answer Sickness , Maternity , Medical

Question Employer's contribution to Superannuation Fund is taxable.

Answer False

Question Forces that favour regional differences are :-

Answer Low mobility , Lower skilled job , Sources of income

Question The goals and ideals of a traditional Indian family were

spiritual and religious.

Answer True

Question In graduated time rates system, if basic salary is Rs.2000

and dearness allowance is 150% then total remuneration will be :-

Answer Rs.5000/-

Top managers Non-financial benefits Compensatory day-off

Workers Piece-rate Piece-rate

Salesmen Commission Bonus

Managers Bonus Overtime

Question The scanlon plan of profit sharing gives utmost importance

to ________.

Answer Employee participation



Answer True

Question Financial &/or quantitative statement prepared & approved

prior to period of time is called :-

Answer Budget

Question Group incentive plans may not become successful due to :-

Answer Unevenness of performance of different members of groups ,

Ill-feeling among group members , No recognition for individual performance

Question Bonus is component of deductions.

Answer False

Question The ________ criterion is usually regarded as an automatic

minimum equity pay criterion.

Answer Cost of living pay

Question Wages of security men in a production unit comes under :-

Answer Indirect labour

Question Major features of production are :-

Answer Labour , Land , Capital

Question The Scanlon plan of profit sharing is more effective where

no of participants is more than 1000.

Answer False

Question Incentive plans fail due to :-

Answer Lack of required tools / training , Unfair standards , Fear

of rate cut


Answer Abolish malpractices , Abuse in wage payment , Promote Trade

Union




Question Profit sharing, as an incentive plan, realizes these

advantages :-

Answer Higher profits , Increased efficiency , Climate for better

employee relations

Question Characteristic of a good compensation system is :-

Answer Higher the efficiency of worker, higher is compensation.

Question The institutions of marriage and family are also to be found

in every :-

Answer Society

Question Hospitality industries includes :-

Answer Hotels

Question To make Scanlon plan successful, there should be :-

Answer Stable product lines and costs , Strong commitment to plan ,

Healthy labour relations

Question For higher management, ________ are influenced by the size

of a company, specific industry and the process of decision making.

Answer Salaries

Question Indirect labour cost forms a part of overheads.

Answer True

Question Salary is still the only or chief motivator for IT

employees.

Answer False

Question Perquisites taxable in all cases include :-

Answer Value of rent free accommodation provided by employer to his

employee

Question A good incentive scheme should have :-

Answer Elasticity , Parity , Less operational costs

Question In Taylor differential piece rate system, high piece rate is

applicable if ________.

Answer Output is above standard

Question Leave pay of current year is treated as ________.

Answer Direct Expenses

Question Cost of time spent on conducting interviews & selecting a

candidate for ________ is called Replacement cost.

Answer Replacement

Question One worker is working under piece rate & time rate

combination system of compensation. He has worked in a week of 06 days

consisting of 48 hours. His hourly rate is Rs.2/- per piece. His output for

the week is 40 units. What will be his earning ?

Answer Rs.96/-


Answer Difference in labour efficiency , Social esteem , Occupation


Answer External motivation

Question Documents useful for the purpose of wage analysis are :-

Answer Wage sheets , Payroll , Accounting registers

Question Variance analysis is done in case of :-

Answer Standard costing

Question If classification system is used, the jobs are already

categorized into grade or :-

Answer Class

Question Inter-firm differentials reflect ________ wage levels of

workers.

Answer Relative

Question Wage Policy is of great concern to :-

Answer Labour Management & Govt.

Question ________ of payment recognizes that individuals are

concerned about the money paid to them and also the relationship of this

amount to what others are paid.

Answer Equity approach

Institutions of marriages & family Society Metros

Past Marriages Permanent Society

Question Incentive payments should be made at the end of fiscal year.

Answer False

Question Most companies as against earlier visible cost don't use the

"Total Cost To The Company".

Answer False

Question During the research it was found that in certain cities

prevailing wage rate are ________where as organizational ability to pay is

more.

Answer Very low

Question In the history of Indian IT industry, the year 2001-2002

will be remembered as ________.

Answer Year of lay-offs