A payment system that rewards employees for the time (rather than output or productivity) that they put into work; payment is expressed per period of time, e.g. $10 per hour or $5,000 per month.

• A. Time rate
• B. Piece rate
• C. Performance-related pay
• D. Salary

Answer: (A)

This question centers on compensation based on hours worked rather than on output. A time rate pays employees for the actual time they spend on the job, expressed as money per hour or per month (for example, $10 per hour or $5,000 per month). It rewards the time invested, not how much is produced.

In contrast, piece rate would reward each unit produced, performance-related pay would be tied to meeting targets or performance metrics, and a salary is typically a fixed amount paid regularly and not inherently based on hours worked.