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Distinguish between the following sets of terms: i) Direct labour cost and indirect labour cost.

      

Distinguish between the following sets of terms:

i) Direct labour cost and indirect labour cost.

  

Answers


Martin
Distinguish between direct and indirect labour costs.

-Direct labour cost is the remuneration paid to employees who actually make the product
concerned. The expenses are directly related to output.

- Indirect labour is the remuneration paid to employees' who support the production process,
for example store keepers; directors. The expense is normally constant and periodic that is not
related to directly.

- Indirect labour is treated as an overhead cost because it cannot be traced to any specific
product. Since director labour can be traced it forms part of the prime cost of a product.

marto answered the question on February 15, 2019 at 07:44


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