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 CHAPTER 4
Costing for Labour

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 Introduction

 Labour is the workforce of an organization

 Right people, right place, right time

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 Recruitment

 Employment record card

 Training

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 Recording Labour Times

 Time sheets
 Job cards
 Job tickets

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 Methods of Remuneration

 Time rate
 Payment by result
 Piecework
 Premium pay
 Bonus pay

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 Wages Department

 Payroll
 Fraud
 Analysis

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 Accounting

 Direct
 Indirect

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 Labour Techniques

 Work study
 Job evaluation
 Merit rating

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 Wage Reports

 Wage analysis
 Overtime
 Idle time
 Labour turnover

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 Overtime

 Overtime premium
 Methods of treating premium

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 Fringe Costs and Vacation Pay

 Direct
 Overhead

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 Set-up Costs

 Labour cost
 Production overhead cost

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 Learning Curve

 Concepts: time, learning, rate,

steady state, cost
 Graphical and mathematical
approach
 Applications

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