Match the items of List I with the correct items of List II
| List I | List II |
|---|---|
| A. Direct financial payments | I. Employer paid insurance and vacation |
| B. Indirect payments | II. Payment of salary and wages on daily, weekly or monthly basis |
| C. Direct time based payments | III. Payment of wages and salary according to piece work |
| D. Direct performance based payments | IV. Incentives, commission and bonus |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A)-(IV), (B)-(I), (C)-(II), (D)-(III)
(A) Direct financial payments – (IV) Incentives, commission and bonus — Direct financial payments are payments like wages, salaries, incentives, commissions and bonuses.
(B) Indirect payments – (I) Employer paid insurance and vacation — Indirect payments are things like employer paid insurance and vacations.
(C) Direct time based payments – (II) Payment of salary and wages on daily, weekly or monthly basis — In a time based plan, salary and wages are paid daily, weekly, monthly or annually.
(D) Direct performance based payments – (III) Payment of wages and salary according to piece work — In a performance based plan, wages are paid according to piecework, for example by the units a worker produces.
NCERT (2026-27 Edition): “(viii) Compensation … Compensation, therefore, refers to all forms of pay or rewards going to employees. It may be in the form of direct financial payments like wages, salaries, incentives, commissions and bonuses and indirect payments like employer paid insurance and vacations.” “Direct financial payments are of two types : time based or performance based. A time based plan means salary and wages are paid either daily, weekly or monthly or annually. Performance based plans means salary/wages are paid according to piecework. For example, a worker may be paid according to the number of units produced by him/her. …” |