Questions on Compensation Management

Questions on Compensation Management

1- Payment to outworkers is done on ________ basis.

(A) Daily

(B) Weekly

(C) Monthly

(D) Yearly

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

(A) Bonuses

(B) Wages

(C) Overtime

(D) All of the above

3- Following is(are) cause(s) of idle time of labor pertaining to administration :-

(A) Poor management

(B) Management policy

(C) Both (A) and (B)

(D) None of the above

4- When a dotcom company starts earning profits, promoters are focused on the launch of:-


(B) New product

(C) New website

(D) All of the above

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

(A) DA

(B) Bonus


(D) All of the above

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

(A) Tension

(B) Lower productivity

(C) More absenteeism

(D) All of the above

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

(A) By formula

(B) By discretion used in allocation of bonus

(C) Both (A) and (B)

(D) None of the above

8- Profit sharing plans can be on :-

(A) Industry basis

(B) Locality basis

(C) Unit basis

(D) All of the above

9- Demand for a particular skill is high and supply is low, compensation given is:-

(A) High

(B) Medium

(C) Low

(D) Very low

10- Organization’s ability to pay, determines ________.

(A) Turnover

(B) Bonuses

(C) Wage level

(D) None of the above

11- Jobs are graded according to the relative skill :-

(A) Effort

(B) Responsibility

(C) Calculations

(D) All of the above

12- Job analysis describes :-

(A) Duties

(B) Responsibilities

(C) Working conditions

(D) All of the above

13- In marginal costing costs are classified as:-

(A) Fixed

(B) Variable

(C) Fixed and Variable

(D) Any of the above

14- Basic compensation systems are :-

(A) Time rate system

(B) Piece rate system

(C) Both (A) and (B)

(D) None of the above

15- Bonus or Commission and Leave travel are common features of :-

(A) Monthly payment

(B) Quarterly payment

(C) Half yearly payment

(D) Annual Payment

16- The term salary does not include :-

(A) Value of free use of motorcar

(B) DA

(C) Employer’s contribution to Provident Fund

(D) All of the above

17- In material costing ________ Costs are written at to Marginal profit & loss Account.

(A) Variable

(B) Fixed

(C) Fixed and Variable

(D) All of the above

18- Compensation paid to worker should be directly proportional to his:-

(A) Efficiency

(B) Results

(C) Skills

(D) All of the above

19- Following is a labor cost control technique :-

(A) Process planning

(B) Production planning

(C) Both (A) and (B)

(D) None of the above

20- Following is (are) the Time rate system(s):-

(A) Ordinary level

(B) High wage level

(C) Graduated time rates 

(D) All of the above


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