Costing for Labour

Instructor’s Manual

CHAPTER
FOUR Costing for Labour

And, as it works, th’ industrious bee computes its time as well as we.
Andrew Marvell

Learning Outcomes
The study of this chapter should enable students to:
 explain the concepts, procedures, methods, and techniques of labour costing and control
 describe the mechanics of labour costing and control
 discuss the importance of labour costing and control in reducing costs, improving productivity
and achieving profitability

Instructor’s Focus
❏ Define what is labour.
❏ Introduce the elements in managing labour.
❏ Describe and explain:
¤ recruitment;
¤ recording of labour times;
¤ methods of remuneration;
¤ incentive schemes;
¤ wages department procedure;
¤ accounting for wages;
¤ labour turnover;
¤ labour techniques;
¤ wage reports;
¤ fringe costs;
¤ vacation and holiday pay, and
¤ set-up costs.
❏ Highlight, present and explain the documents used.
❏ Illustrate through worked examples the methods of remuneration, incentive schemes, labour
turnover rate, overtime premium and learning curve.
❏ Conclude the chapter with an illustration of comprehensive examples and attempt at the structured
and multiple choice questions.