Study Notes management accounting acca f2

pay-slips.
● 
Personnel Department: 
The personnel department is headed by a professional personnel officer 
trained in managing people, labour laws, company personnel policy and industry conditions. The 
professional personnel should have an understanding of the needs and problems of employees. The 
department is responsible for: 
➢
 
Engagement, transfer and discharge of employees
➢
 
Classification and method of remuneration 
•
Production Planning Department: 
The production planning department is responsible for 
➢
 
Scheduling work 
➢
 
Issuing job orders to production department 
➢
 
Chasing up jobs when they run late 

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F2 Management Accounting 
Page 24 of 147 
LABOUR REMUNERATION METHODS 
Payment Modes 
 
 
 
 
 
 
Time related 
 
 
 
 
Output related 
 
 
Fixed Salary 
Hourly Base 
 
Straight Piece Differential Piece 
Guaranteed Piece 
 
 
Rate payment
rate payment rate payment
rate system 
Guaranteed 
Guaranteed Minimum 
Wage system piece rate system 
✓
 
Time Related
This is the most commonly used remuneration method. Under this system employees’ pay is based 
on hours, days, weeks or months.
▪ 
Fixed Salary: 
A fixed salary, which employee receives after a particular intervals, (usually 
weekly, monthly). It does not depend on output produced.