What is merit rating in Cost Accounting?

The Merit Rating Technique in Cost Accounting.

Merit rating is the technique of evaluating actual performance of the employees in job. It is alone to measure the individual performance and efficiency of the workers who are working on similar jobs. In this system, a number of traits are measured to know an employee’s worth. The personal qualities of employees which are usually appraised through merit rating are as follows:

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  • Knowledge, skill and experience of the work.
  • Quality of work done.
  • Quantity of work done.
  • Attendance and punctuality.
  • Co-operation and discipline.
  • Reliability and integrity.
  • Self-confidence and sense of judgment etc.
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