Which term describes employees who are paid by the number of items produced?

Prepare for the WJEC GCSE Business Studies Test with interactive quizzes and detailed explanations. Enhance your knowledge on key business concepts and boost your exam confidence.

Multiple Choice

Which term describes employees who are paid by the number of items produced?

Explanation:
Pay by the number of items produced is called piece rate. This method links earnings directly to output, so more items finished means higher pay. It’s common where output is easy to measure, like manufacturing. A wage is pay based on time or a set rate, not directly on quantity produced. A salary is a fixed regular payment regardless of output. Voluntary deductions are amounts taken from pay for things like pensions or benefits, not a method of pay. For example, if the piece rate is £0.50 per item and someone makes 100 items, they earn £50.

Pay by the number of items produced is called piece rate. This method links earnings directly to output, so more items finished means higher pay. It’s common where output is easy to measure, like manufacturing. A wage is pay based on time or a set rate, not directly on quantity produced. A salary is a fixed regular payment regardless of output. Voluntary deductions are amounts taken from pay for things like pensions or benefits, not a method of pay. For example, if the piece rate is £0.50 per item and someone makes 100 items, they earn £50.

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