Cost elements for labor / worker
Two types of labour are accounted for labor cost
Direct - Could be traced and can be linked to a specific job for a specific product .
Indirect - It could not be associated with any specific product
Elements for cost of labour
Salary or wages
Workers / Employees taxes
Employer taxes and fringe benefits
Shift premiums
Overtime
I
dle time
Incentive plans
Cost of labour turnover
Preventive cost
The cost companies pays to retain worker/ employees from leaving are mentioned below
Medical and housing facility
Benefit like pension gratuity and bonus
Educational facility for employees children
G
ood working condition
W
elfare schemes
Replacement cost
Cost of hiring
Cost of training
Cost of wastages
Cost of defectives
More on Manufacturing Costing
Product Costing
Material Cost
Labor Cost
Factory Overhead Cost
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