AAT Elements of Costing: Labour Costs Key Terms

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The method of renumeration when payment is on the basis of time spent at work; it can be an hourly rate or based on a longer time period.
Time Rate
1 of 5
A time rate that is applied to the normal contracted work time, and is usually an hourly rate
Basic Rate
2 of 5
The rate (normally hourly) paid for time worked in excess of the normal contracted time; it is usually at a higher rate than basic rate.
Overtime Rate
3 of 5
A payment system when the employee is paid for the work carried out (e.g. per task or unit); this does not take any account of the time taken.
Piecework
4 of 5
A system used in conjunction with another payment method (for example time rate, which provides additional payment for efficient working, e.g. production that is more than a set level).
Bonus System
5 of 5

Other cards in this set

Card 2

Front

A time rate that is applied to the normal contracted work time, and is usually an hourly rate

Back

Basic Rate

Card 3

Front

The rate (normally hourly) paid for time worked in excess of the normal contracted time; it is usually at a higher rate than basic rate.

Back

Preview of the front of card 3

Card 4

Front

A payment system when the employee is paid for the work carried out (e.g. per task or unit); this does not take any account of the time taken.

Back

Preview of the front of card 4

Card 5

Front

A system used in conjunction with another payment method (for example time rate, which provides additional payment for efficient working, e.g. production that is more than a set level).

Back

Preview of the front of card 5

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