Q52. What are the various scheme of group bonus?
Ans. Various scheme of group bonus are:
- Priestman’s Production Plan: According to this method, when the actual production in units exceeds the standard fixed, a bonus is paid to the workers as additional wages equivalent to the percentage of actual output over the production output.
- Cost Efficiency Plan:
- Nunn Bush Plan: In this method, standard is set for direct labor.
- Cost As A Percentage Of Sales Value: A fund is created by credit
ing the total standard labor cost. Actual labor cost is debited in the fund. If there is any balance in the fund than it is distributed as bonus.
- Scanlon Plans: It is same as Nunn Bush Plan except that the total balance in fund is not distributed. Two-third to three forth of such balance is distributed as bonus and balance is kept as future reserve.
- Ruker Plan: It is also same as Nunn Bush Plan except that fund is created as a percentage of Conversion Cost than sales value.
- Town Gain Sharing Plan: Under, this method, 50% of saving in labor cost Tibet is distributed as bonus.
- Budgeted Expenses Bonus: Under this method, bonus is paid as a percentage of saving in actual expenses.
- Waste Reduction Bonus: In this method, a percentage of total value of reduction in wastage of material is distributed as bonus.