Which term describes wage based on hours worked?

Boost your IGCSE Business Studies score by focusing on Section 2 – People in Business. Use flashcards and multiple-choice questions with explanations to prepare for your exam!

Multiple Choice

Which term describes wage based on hours worked?

Explanation:
Pay based on hours worked is called a time rate. In this approach, how much you earn depends on the number of hours you actually work, usually at an agreed amount per hour. This contrasts with pay by what you produce (piece rate), which depends on units completed; a salary, which is a fixed regular amount not tied to hours; and commissions, which are earned from sales or performance. Time rate is common for jobs where the amount of work can vary or isn’t directly linked to output, and overtime rules may apply for extra hours.

Pay based on hours worked is called a time rate. In this approach, how much you earn depends on the number of hours you actually work, usually at an agreed amount per hour. This contrasts with pay by what you produce (piece rate), which depends on units completed; a salary, which is a fixed regular amount not tied to hours; and commissions, which are earned from sales or performance. Time rate is common for jobs where the amount of work can vary or isn’t directly linked to output, and overtime rules may apply for extra hours.

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