labour costing is a very important part of cost accounting.
Following are the Top Question answers on Labour cost.
Labour Cost Question Answer (Cost Accounting)
1. Define Piece workers.
Piece workers are those workers to whom wages are paid according to work done or per item manufactured.
2. What is meant by Casual labour?
Casual workers or not regular workers who are engaged for a short period due to the illness of workers or additional workload.
3. What is meant by Ghost worker?
Ghost workers mean a worker who is enrolled in payslip but actually does not work in the factory.
4. What is the meant Out worker?
Out workers work outside factory premises and may or may not be upon the muster rolls of the factory.
5. What idle time?
Idle time means No production hours but wages are paid to the worker for that time.
6. Enumerate different methods of Recording Attendance Time.
- Attending register.
- Metal discs.
- Time recording clock etc.
7. Name the methods of Giving Remuneration to workers.
- Ordinary time rate method.
- Graduated time rate method.
- High-level time rate method.
- Straight piece rate method.
- Piece rate with guaranteed pay rate, and differential piece rate.
8. What are Piece Rate Wages?
The wages of the workers are calculated on the basis of the number of manufactured goods or work.
9. What is meant by Wages abstract?
It is a statement prepared by the cost accounting department with the help of a time card job card and wages sheet.
10. What is meant by differential piece rate?
Differential piece rate in this method the payment of wages is made on a piece rate basis but there are different piece rates depending upon the efficiency of the worker.
11. What is the main object of labour control?
To determine the working horse for payment of wages computation of overtime and implementation of incentive schemes etc.
12. What do you mean by overtime wages?
If workers work in the factory in excess of normal time wages paid for the excess working hours are overtime wages.
13. What is meant by labour turnover?
When an existing worker quits the services of the factory is known as labour turnover.
14. What is the preventive cost of labour turnover?
Preventive cost is the cost incurred by satisfied workers to remain in the unit or factory and is helpful in checking labour turnover.
15. What do you mean by Replacement Cost of labour Turnover?
Expenses incurred upon newly recruited workers and loss suffered due to this factor are included in this cost viz selection cost, spoilage, low efficiency.
16. What is the flux rate of turnover?
The flux rate of labour turnover considers the total changes in the composition of the labour force on account of the separation and replacement of employees.
17. What do you understand by time study?
Time study is useful in the determination of the time required by an average worker in performing a job or producing a product.
18. Explain the profit-sharing scheme.
The provision of the bonus payment act 1965 applies upon payment of bonuses to workers which ranges from 8.33% to 20.00% of normal wages.
19. What is the difference between remuneration and incentive wages?
The amount paid to workers in consideration of their services is remuneration while the incentive is paid for extra work.
20. Write any Five names of Popularly labour bonus plans for wages paid.
Bonus schemes for wages payment are the following:
- Halsey premium plan.
- Rowan scheme.
- Emersions efficiency plan.
- Priestman bonus scheme.
- Merric”s differential piece rate method.
21. Discuss the treatment of overtime in cost accounting.
Accounting of overtime in cost accounting as:
Direct wages: if work is completed as per the direction of the customer and over time has been paid for completion of such work.
Factory overhead: if overtime is paid in accordance with the managerial decision due to the shortage of labour or any other reasons.
Not treated as part of the cost but charged to costing profit or loss a/c if overtime is paid to overcome the shortage of production due to abnormal reasons.