Explain the term piece rate (line 6).

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2023). The mark or mark type is shown in brackets.

1. A01 Knowledge and understanding. Knowledge of piece rate may include: Payment for each item produced
2. Ensures employees paid for the amount of work they do
3. Payment by results
4. AO2 Application. Limited application: applies knowledge of piece rate to a product OR business. Example or some other way of showing good understanding of piece rate.
5. Developed application: applies knowledge of piece rate to a product AND a business. Example or some other way of showing good understanding of piece rate.
6. Application can be made to PS or any other scenario/context/business/product. Accept all valid responses.
7. [3] Based on how many units produced used when output can be measured and it can then be a financial motivator.
8. [3] Paid per unit produced, for example if the employee receives $5 per unit, produces 20 units in a day, they will be paid $100 for the day.
9. [2] Paid per item manufactured, in country V employees paid according to the amount of plastic packaging produced.
10. [1] Pay depends on their units of output.