Chapter quiz and answer on labour law

Cost/Management Accounting notes

1. Define labour cost

2. Highlight the elements of labour cost

3. What is labour turnover?

4. List the costs of labour turnover

5. List at least three departments that accumulate labour cost
1. Labour costs refer to all the costs incurred in compensating the human resources employed to provide a useful service in the production process

2. Elements of labour cost
• Basic wages
• Overtime premium
• Shift premium
• Bonus

3. Labour turnover is the number of employees leaving or being recruited in a period of time.

4. Costs of labour turnover
• Replacement cost
• Preventive cost

5. Departments accumulating labour cost
• Personnel department
• Production planning department
• Time keeping department
• Wages department
• Cost accounting department

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