Following is the Top Question answers on Labour cost.
Labour Cost Question Answer (Cost Accounting)
Q1. Define Piece workers?
Answer: Piece workers are those workers to whom wages are paid according to work done or per item manufactured.
Q2. What is meant by Casual labour?
Answer: Casual works or not regularly workers and are engaged for a short period due to the illness of workers or additional workload.
Q3. What is meant by Ghost worker?
Answer: Ghost workers mean the worker who is enrolled in payslip but actually they do not work in the factory.
Q4. What is the meant Out worker?
Answer: Out workers work outside factory premises and may or may not be upon the muster rolls of the factory.
Q5. What idle time?
Answer: Idle time means No production hours but wages is paid to the worker for that time.
Q6. Enumerate different methods of Recording Attendance Time?
- Attending register.
- Metal discs.
- Time recording clock etc.
Q7. 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.
Q8. What is Piece Rate Wages?
Answer: Wages of the workers is calculated on the basis of a number of manufactured goods or work.
Q9. What is meant by Wages abstract?
Answer: It is a statement prepared by the cost accounting department with the help of time card job card and wages sheet.
Q10. What is meant by differential piece rate?
Answer: Differential piece rate in this method the payment of wages is made on piece rate basis but there are different piece rate depends upon the efficiency of the worker.
Q11. What is the main object of labour control?
Answer: To determine working horse for payment of wages computation of overtime and implementation of incentive schemes etc.
Q12. What do you mean by overtime wages?
Answer: If workers work in the factory in excess of normal time wages paid for the excess working horse is overtime wages.
Q13. What is meant by labour turnover?
Answer: When an existing worker quits the services of the factory is known as labour turnover.
Q14. What is the preventive cost of labour turnover?
Answer: Preventive cost is the cost incurred to satisfied workers to remain in the unit or factory and helpful in checking of labour turnover.
Q15. What do you mean by Replacement Cost of labour Turnover?
Answer: Expenses incurred upon newly recruited worker and loss suffered due to this factor are included in this cost viz selection cost, spoilage, low efficiency.
Q16. What is the flux rate of turnover?
Answer: Flux rate of labour turnover consider the total changes in the composition of the labour force on account of separation and replacement of employee.
Q17. What do you understand by time study?
Answer: Time study is useful in the determination of time required by an average worker in performing a job or produce a product.
Q18. Explain the profit sharing scheme?
Answer: Provision of bonus payment act 1965 applies upon payment of bonus to workers which ranges from 8.33% to 20.00% of normal wages.
Q19. What is the difference between remuneration and incentive wages?
Answer: Amount paid to workers in consideration of their services is remuneration while incentive is paid for extra work.
Q20. Write any Five names of Popularly labour bonus plans for wages payment?
Answer: Bonus scheme for wages payment are the following:
- Halsey premium plan.
- Rowan scheme.
- Emersions efficiency plan.
- Priestman bonus scheme.
- Merric”s differential piece rate method.
Q21. Discuss the treatment of overtime in cost accounting?
Answer: Accounting of overtime in cost accounting as:
Direct wages: if work is completed as per the direction of 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 too costing profit or loss a/c if overtime is paid to overtime is paid to overcome the shortage of production due to abnormal reasons.
This is best Top 21 Labour Cost Question Answer (Cost Accounting).