Labour Costs and Overhead Costs, Cost Accounting

Labour Costs and Overhead costs

Labour Costs

Labour costs can be indirect or direct labour costs. Direct labour cost refers to wages paid to workers who such are directly included in the conversion of raw materials to finished goods. These are named direct labour costs Indirect labour costs concern to the wages paid to workers that efforts cannot be readily identified along with specific product units or batches as like an example of labourers paid to keep all the premises employed for production of services and goods.

Overhead Costs

They are named also as indirect production costs. They are those costs that can only be charged to a cost unit by using few estimated basis. The estimating procedure permits a share of the indirect costs being charged to each cost unit.  Such costs cannot be identified particularly to the end product.

Posted Date: 2/5/2013 2:53:46 AM | Location : United States







Related Discussions:- Labour Costs and Overhead Costs, Assignment Help, Ask Question on Labour Costs and Overhead Costs, Get Answer, Expert's Help, Labour Costs and Overhead Costs Discussions

Write discussion on Labour Costs and Overhead Costs
Your posts are moderated
Related Questions
Campground Inc. is considering the production and sale of propane lamps. Annual fixed costs associated with the project are expected to total $60,000. In addition, each lamp would

Q. Why communities begin using FCA? There are several reasons why communities start by means of FCA. For instance: • To elucidate more evidently MSW costs to people. • It is

1. Why are marginal costs increasing? Why are they not always constant? You may give examples in some industries or just state two reasons at least.

Cost accounting as a descriptive or analytical discipline


Calculation of Deductions - Wages Department A range of deductions are complete from gross earnings when computing the net payment because of the employee, that deductions may

Why do we separate factory overhead from materials and labor?

1. when using the internal rate of return method to evaluate capital spending on a new project, the project will be accepted if the internal rate of return is equal to or greater t

Time Keeping - Cost Accumulation A labour cost control routine should ensure that payments are paid only to employees who have spent time at the work place and that payments a

Analysis of stockholders equity: Star Corporation issued both common and preferred stock during 19X6. The stockholders' equity sections of the company's balance sheets at the