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Labour Costs
Definition of Labour Cost
A labour cost refers to all the costs incurred in compensating the human resources used in the production process to provide a useful service. Such compensation generally comes in the form of like:
a. Overtime pay
b. Basic salary
c. Allowances
d. Bonus
e. Wages
Managers need financial information to help them make decisions, communicate important information about their organization, and demonstrate fiscal responsibility to stakeholders.
#question.discuss the importance of cost classification to a business organisation?
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