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Assuming she is paid $10 for each skirt she produces. This compensation plan describe what is called piece rate.
Piece rate can be defined as the process in which employee are being paid based on the number of product produced by the employee.
Some companies or employer tend to make use of piece rate pay by paying their employee based on the quantity of goods the company manufacture on a daily basis.
Inconclusion this compensation plan describe what is called piece rate.
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