Using piece rates for employees in an assembly line usually increases ________, but it may reduce ________.
A) output; quality
B) costs; revenues
C) quality; output
D) revenues; costs

Question

Quizplus · Accepted Answer

Piece rates incentivize workers to produce more, increasing output. However, there is a risk that workers may sacrifice quality in order to produce more quickly, reducing quality. Option B is incorrect as piece rates would likely increase costs due to the increased volume of output. Option D is also incorrect as piece rates would likely increase revenues due to the increased volume of output.

Using Piece Rates for Employees in an Assembly Line Usually