Details regarding Labor Cost Meaning,Formula etc for U G and P G Students

1. Cost Accounting
Prepared by
Jissy.C
Assistant Professor
Department of commerce(IB)
SREE NARAYANA GURU COLLEGE

2. LABOUR COST
Labour cost is one of the factors of production. It
represents the human contribution to production.
• Classification of labour cost
Direct labour cost
Indirect labour cost
• Labour cost control
Personal Department
Time recording Dept
Pay roll Dept
Engineering Dept
Cost Accounting Dept

3. TIME KEEPING AND TIME BOOKING
Time keeping
Time Keeping involves recording the arrival &Departure
time of employees in factory. It records the incoming
&outgoing time of employees in a factory
Methods of Time keeping
• Manual Methods:
Attendance Register
Token method
• Mechanical Methods:
Dial Time recorder
Card Time Recorder
Autograph or Signature type time recorder
TIME BOOKING
It Denotes the process of recording the time spent by each worker on
various jobs in a factory .It involves the recording of the starting
time & finishing time of employees on a job

4. Methods of Time Booking
• Daily Time Sheet
• Weekly Time sheet
• Job card
• Combined time &job Card
• Labour cost card
• Piece work Card
MOTION AND TIME STUDIES
Motion study consists of dividing the work into
the most fundamental elements separately and
in relation to one another : and from those
studied elements when times,building methods
of least waste.

5. TIME STUDY
Time study is a defined as observing, recording,
&analyzing the time required to perform each detailed
element of an operation
JOB EVALUTION
It represents an effort to determine the relative value of
every job in a plan & to determine what the fair wage for
such a job should be
Steps in a job evaluation Programme
Step:1 Selection of the factors common to all jobs:-Skills,
Efforts, Responsibilities, Job Conditions
Step :2Clear cut definition of the factors
Step:3 Selection of a suitable rating method:- Ranking
method, Job Classification ,Point Method, Factor
comparison method

6. PERFORMANCE APPRASIAL or MERIT RATING
A systematic, period & so far as humanly possible
,an impartial rating of an employee excellence in
matters pertaining to his present job & to his
potentialities for a better job
Methods of Merit Rating.
1.Rating Scales
2.Employee Comparison System
3.Check Lists Rating System
4.Critical Incident Technique
5.Other methods

7. CASUAL WORKERS
Casual workers refer to those who are not on pay-
roll of the factory but are engaged casually where
there is extra load in the factory.
IDLE TIME
Idle time is that time for which payment made but
no direct production /benefit is obtained .The
question of idle time arises only when the
payment is made on the time basis
Idle Time=Time Recorded as per Time card-Time
Booked on job as per job card.