Labor cost is also called wage and it is financial reward paid by an employer to an employee in exchange for their work or services. Payment may be calculated as a fixed amount for each task complete, or at an hourly or daily rate, or based on an easily measured quantity of work done.
General Questions and Answers about Process Costing System: Questions: What is the primary objective in process costing? See answer Job order and process costing procedures are used by different types of industries. Discuss the procedure appropriate for each type. See answer For the following
Further Classification of Labor Costs: Learning Objective of the Article: Properly classify labor costs associated with idle time, overtime and fringe benefits. Idle time, overtime, and fringe benefits associated with direct labor workers pose particular problems in accounting for labor costs. Are these costs
Definition and Explanation of Process Costing System: Cost accumulation procedures used by manufacturing concerns are classified as either job order costing or process costing. The Job Order Costing System chapter deals with the procedures applicable to job order costing. It is important to understand