Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Cost Accounting Expert

Classification of Labour Costs

This can be classified into like:

a) Indirect or Direct cost

b) Variable or Fixed cost

c) Non controllable and controllable cost

a) Direct labour cost might be defined like the cost of remuneration for staff skills and efforts applied directly to a product or saleable service and that can be recognized separately in product costs.

Indirect labour cost may be defined like labour costs that are not charged directly to a product. The analysis of labour costs into indirect or direct cost depends on the circumstances under review

Examples involve-

The wage paid to a worker who assembles components for a product is a direct cost while that paid to a worker who is moving components for a range of products from one part of the factory to another is an indirect cost.

b) Fixed cost in relation to labour is where through a worker is paid a fixed weekly wage irrespective of the output produced cost varies directly along with level of activity, as an example of whereas wages are paid at a rate per unit.

c) Variable Labour Cost varies directly along with level of activity, for example where wages are paid per unit.

d) Controllable labour cost is a cost that can be influenced via the actions of a person in whom authority for such control is vested. The control of labour costs will be influenced via the method of remuneration and the degree of management control that is exercised.

Such uncontrollable labour costs cannot be influenced with an officer in the organization, as like an example of, wage rise agitated via the trade union is an uncontrollable labour cost.

Cost Accounting, Accounting

  • Category:- Cost Accounting
  • Reference No.:- M9520787

Have any Question?


Related Questions in Cost Accounting

Assessment taskselect two public limited companies listed

Assessment task Select two public limited companies listed on the Australian Securities Exchange (ASX) that are in the same industry. Go to the website of your selected companies. Then go to the Investor Relations sectio ...

Research and write a paper on the topicthe ethics of

Research and write a paper on the Topic: The Ethics of manipulating budgets The paper should be approximately 3-4 double spaced written pages, plus your reference page (at least four references required) and any appendic ...

The balanced scorecard can be described as a tool that

The Balanced Scorecard can be described as a tool that "translates an organisation's mission and strategy into a set of performance measures that provide the framework for implementing its strategy" (Horgren et al., 2014 ...

Assessment taskselect two public limited companies listed

Assessment task Select two public limited companies listed on the Australian Securities Exchange (ASX) that are in the same industry. Go to the website of your selected companies. Then go to the Investor Relations sectio ...

Assignment - the effect of customer service experience on

Assignment - The Effect of Customer Service Experience on Subsequent Purchase Decisions One of our core topics this term will be to examine how management decisions affect sales volume and, therefore, company profits. Tw ...

Assignment1 based on your topic given by your lecturer

Assignment: 1. Based on your topic given by your Lecturer, select two research-based journal articles relating to your topic. The articles you choose must cover a contemporary issue that is relevant to your topic. The jo ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As