MCQ Questions on Compensation Management

MCQ Questions on Compensation Management

1- Force(s) that favor regional difference(s) is (are) :-

(A) Low mobility

(B) Lower skilled job

(C) Sources of income

(D) All of the above

2- Match The Following

1. Top managers a. Piece-rate
2. Workers b. Commission
3. Salesmen c. Non-financial benefits
4. Managers d. Bonus

(A) 1-d, 2-a, 3-c, 4-b

(B) 1-c, 2-a, 3-b, 4-d

(C) 1-b, 2-a, 3-c, 4-d

(D) 1-d, 2-c, 3-a, 4-b

3- Employees cost to the company includes :-

(A) Basic wages

(B) Incentives

(C) Both (A) and (B)

(D) None of the above

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

(A) Stock option

(B) Allowances

(C) Increase in pay

(D) All of the above

5- Payment is done on the basis of units of output, incase of ________ workers.

(A) Full time

(B) Probation

(C) Piece

(D) None of the above

6- Following is (are) cause(s) of idle time of labor pertaining to production

(A) Failure of electricity

(B) Seasonal nature of demand

(C) Breakdown of machinery

(D) All of the above

7- Time booking on job helps for :-

(A) Material cost

(B) Marginal cost

(C) Estimating labor cost

(D) All of the above

8- Monetary incentive plans result in :-

(A) Higher wages

(B) Lower output per man-hour

(C) Higher unit cost

(D) All of the above

9- Better production planning & control is facilitated through :-

(A) Gantt charts

(B) Job cards

(C)  Both (A) and (B)

(D) None of the above

10- Following are economic causes of idle time of labor :-

(A) Trade cycles

(B) Non availability of working capital

(C) Both (A) and (B)

(D) None of the above

11- Prevailing market rate is also known as :-

(A) Fair wage

(B) Living wage

(C) Comparable wage

(D) Minimum wage

12- Which of the following is (are) used to compensate major executives?

(A) Straight salaries

(B) Bonuses

(C) Profit sharing

(D) All of the above

13- In piece rate and time rate combination system, if piece rate earning constantly fall below minimum guaranteed payment, labor cost :-

(A) Remains constant

(B) Decreases

(C) Increases

(D) Any of the above

14- Ratio of number of persons over 4 years of service at present to present total employees is called ________

(A) Skill dilution index

(B) Skill index

(C) Dilution index

(D) Retention index

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

(A) Quality of output is of great importance

(B) Quantitative measurement of work is not possible

(C) Production unit is small

(D) All of the above

16- A job is rated to determine :-

(A) Its value relative to other jobs in organization

(B) Wages

(C) Allowances

(D) All of the above

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

(A) Labor

(B) Surplus profit

(C) Both (A) and (B)

(D) None of the above

18- Expenses incurred by business for packing & packaging, advertisement, sales promotion is called :-

(A) Operating

(B) Non-operating

(C) Overheads

(D) None of the above

19- Scanlon plan of profit sharing aims at :-

(A) Workers participation

(B) Reduction of cost of operation of increased production

(C) Sharing in gains 

(D) All of the above

20-Y2K era opened the flood gates for:-

(A) IT industries

(B) Automobile industries

(C) Textile industries

(D) Electronics industries

ANSWERS:

1-(D), 2-(B), 3-(C), 4-(A), 5-(C), 6-(D), 7-(C), 8-(A), 9-(B), 10-(C), 11-(C), 12-(D), 13-(C), 14-(A), 15-(D), 16-(A), 17-(B), 18-(C), 19-(D), 20-(A)