CAF-5 · Chapter 4 · Question 4 of 10
Under a "High day-rate system" of wage incentives, how is the employee rewarded?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The target to qualify for a bonus is set in terms of units, but the bonus is awarded as a higher hourly time rate.
Explanation
Under a high day-rate system, employees get paid at a higher than average hourly rate provided they produce a given amount. The target is set in units, whereas the reward (bonus) is given in terms of an increased time rate.
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