Managerial Accounting

The cost of labor is the sum of all wages paid to employees, as well as the cost of employee benefits and payroll taxes paid by an employer. The cost of labor is broken into direct and indirect (overhead) costs. Direct costs include wages for the employees that produce a product, including workers on an assembly line, while indirect costs are associated with support labor, such as employees who maintain factory equipment.

By the end of this lesson, you should be able to:

• explain labour recording, method of remuneration, time-based schemes;

• compute labour cost based on time-based schemes, premium bonus schemes

       labour turnover;