1. Units of output – appropriate when all the units produced are identical and involve identical time and production process.
2. Direct labour hour– appropriate in those departments which are labour intensive.
3. Direct machine hour– appropriate in those cost centers where machines are used to great extend in-order to complete the production process.
4. Direct wages percentage– appropriate where wages paid are related to time.
5.Direct material percentage– suitable for those organizations when material cost represents
a large portion of total costs and where the material cost is significant factor.
6.Prime cost percentage:- most appropriate where each jobs material and labour cost proportions vary to great extent
Wilfykil answered the question on April 17, 2019 at 07:55
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Required:
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Date posted: April 17, 2019. Answers (1)