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Employee cost
Costing
Please explain illustration 11 (pg no :3.31) in employee cost.
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Thread Starter
Naveen Kumar SI have not understood theory part, why they choose Rowan system, even in halsey plan entire gain will not transfer to worker
Under Halsey, Bonus = 50% (Time saved Ã? Rate per hour). Under Rowan, Bonus = Saved time/Standard time Ã? Actual time taken Ã? Rate per hour. (Bonus is calculated in the ratio of time saved with standard time. Under this system, the bonus is always in decreasing proportion because as the time saved by workers goes on increasing, the time taken by him will go on reducing..) In case a worker works very fast his wages can be double also in case of Halsey System but in Rowan System, it can never be double. In case a worker saves more than half of the standard time, the rate of bonus goes very high in Halsey System.
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