Which compensation type is defined as a fee paid to an employee for completing a task?

Which compensation type is defined as a fee paid to an employee for completing a task?

• A. Hourly pay
• B. Salary
• C. Commission
• D. Piece work

Answer: (C)

Pay tied directly to completing a task is best described by piece work. In piece-rate pay, the employee earns a specific amount for each unit produced or task finished, so earnings depend on output. This differs from hourly pay, which depends on time worked; salary, a fixed regular amount; and commission, which is usually a percentage of sales or a broader performance metric rather than payment for a single task. So the scenario described aligns with piece work.

Pay tied directly to completing a task is best described by piece work. In piece-rate pay, the employee earns a specific amount for each unit produced or task finished, so earnings depend on output. This differs from hourly pay, which depends on time worked; salary, a fixed regular amount; and commission, which is usually a percentage of sales or a broader performance metric rather than payment for a single task. So the scenario described aligns with piece work.