COST ACCOUNTING
INTRODUCTION TO COST ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The fixed salaries paid to workers that can be directly attributed to specific products or services.
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The wages paid to workers that can be directly attributed to specific products or services.
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The wages paid to workers that can be indirectly attributed to specific products or services.
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Total Salaries and Wages
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Detailed explanation-1: -Direct labor refers to the salaries and wages paid to workers that can be directly attributed to specific products or services. It includes the cost of regular working hours, overtime hours worked, payroll taxes, unemployment tax, Medicare, employment insurance, etc.
Detailed explanation-2: -Some examples of variable costs include: Direct labor.
Detailed explanation-3: -Direct labor refers to any employee that is directly involved in the manufacturing of a product. If your business manufactures bicycles, the employees producing the bicycles are considered direct labor. Assemblers, welders, painters, and machinists would all be considered direct labor.
Detailed explanation-4: -2. Direct labor. Direct labor costs are the wages, benefits, and insurance that are paid to employees who are directly involved in manufacturing and producing the goods – for example, workers on the assembly line or those who use the machinery to make the products.
Detailed explanation-5: -Direct labor costs include regular working hours, overtime hours, related payroll taxes, social security, Medicare, unemployment, worker’s insurance, retirement plan contributions, health insurance, and more. Some companies include the cost of training and retaining these employees as well.