Chapter 7: Accounting for Labour

There are three basic remuneration methods - time work, piecework, and bonus schemes.

Time work. An employee is paid at a normal rate of $5 per hour and works for 8 hours in a day. On another occasion the same employee works 4 hours of overtime, for which the rate is time-and-a-half.

Piecework. An employee is paid $0.20 for every unit produced, with a guaranteed minimum wage of $750 per week. In week 1 the employee produces 5,000 units. In week 2 the employee produces only 3,000 units.