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CHRP Knowledge Exam · Question

Which compensation method involves employees receiving a fixed amount for each unit of output they produce?

A piece-rate system directly ties an employee's earnings to the quantity of work produced, encouraging higher productivity.

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Question: Which compensation method involves employees receiving a fixed amount for each unit of output they produce?

Answer options: ✅ Piece-rate system

  • Salary
  • Hourly wage
  • Commission

Correct answer: Piece-rate system

Explanation: A piece-rate system directly ties an employee's earnings to the quantity of work produced, encouraging higher productivity.

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