cost accounting presentation on labor cost, overtime wages, idle time, and holiday pay !!

1. CostAccounting
Presentation by Sree Hari

2. Contentofthe
Presentation
03
01
02 04
Labor Costs
Idle Time
Overtime Wages
Holiday Pay

3. Whatis Labour Cost?
Variable costs increase and decrease with
like production demand and economic
Variable:
variables
conditions.
Labor costing is the process of calculating the cost of labor for
a product or service. It is a crucial part of business operations
and can significantly impact profitability. Cost of labor can be
further broken down into fixed and variable costs:
Fixed: Fixed costs are usually contracted costs but
sometimes includes essential costs that are predictable.

4. Laborcostsaretypicallybrokendowninto: -
DirectCosts
The direct cost of labor includes the cost of wages
and benefits for employees who are directly
involved in producing the product or service
commodity.
Indirectcosts
The indirect cost of labor refers to amounts paid for
employees that support the commodity but aren't
directly involved in making it.

5. IdleTime
Idle time is the unproductive time of employees for which they are still
paid. Idle time means the volume of time the personnel remains idle in a
normal working morning.
The idle occasion is usually caused by a sudden fault in machine or tools,
power failure, deficiency of orders for the merchandise, inefficient work
booking, defective materials along with a shortage of raw materials, etc

6. OvertimeWages/premium
Overtime premium could be the amount that can be paid, for this
overtime worked, well over the normal income rate. Like lazy time,
overtime premium is also treated as oblique labor cost and
included in manufacturing overhead charges.

7. FringeLabor/Holidaypay
Fringe benefits are benefits that recruiters provide to
employees as well as normal salaries or even wages. Examples
connected with fringe benefits are hospitalization, insurance
plans, retirement plans, paid holidays and investment, etc

9. Thankyouverymuch!