ECONOMICS

COST ACCOUNTING

VARIABLE COSTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
The payment made to the following is cost of direct labour.
A
Machinist
B
Supervisor
C
Inspector
D
Sweeper
Explanation: 

Detailed explanation-1: -sweeper. Answer: Direct labour includes labour who are directly involved in production activities. So, (a) machinist is the right answer.

Detailed explanation-2: -Direct labor includes the cost of employee wages, payroll taxes, retirement contributions, health insurance, workers’ compensation, life insurance and other employee benefits.

Detailed explanation-3: -The payment made to the following is cost of direct labour. Explanation: Direct labor costs are the wages or salaries paid to employees who physically produce products. In other words, these expenses are the costs paid to workers who make the products that manufactures sell.

Detailed explanation-4: -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-5: -Thus, direct labour cost means the wages given to the workers who are directly involved in manufacturing of the garments and the cost that can be traced per garment. So, the wages cost may include the salaries for cutters, sewers, press operators and packing operators as well.

There is 1 question to complete.