CMA I - Labour Costing

Which ONE of the following would be classified as direct labour?

• Personnel manager in a company servicing cars.

• Bricklayer in a construction company.

• General Manager in a DIY shop.

• Maintenance manager in a company producing cameras.

Wage payments for idle time within a production department are classified as

• Direct labour cost

• Prime cost

• Administrative overhead

• Factory overhead

The graph shows the wages earned by an employee during a single day.

Which ONE of the remuneration systems listed below does the graph represent?

• Differential piecework.

• A flat rate per hour with a premium for overtime working.

• Straight piecework.

• Piecework with a guaranteed minimum daily wage.

Which of the following should be classified as indirect labour?

• Machine operators in a factory producing furniture.

• Lawyers in a legal firm.

• Maintenance workers in a power generation organisation.

• Lorry drivers in a road haulage company.

Piece workers are paid wages on __________ basis.

• Piece Rate

• Time Rate

• Time saved basis

• None of the above

In case of rush orders, overtime premium should be charged to _________.

• Normal goods

• Specific job

• Factory

• Customer

Wages paid during normal idle time is treated as _________.

• Factory OH

• General OH

• Labour Cost

• Bonus

When some workers leave the employment and new workers join in place of those leaving is called ___________.

• Turnover

• Labour turnover

• Seasonal job

• Mobility

Cost of labour turnover classified into ______ and ______ .

• Preventive costs, labour costs

• Replacement costs, product cost

• Preventive costs, Replacement costs

• Labour cost, product cost

Under _____ workers are paid at standard rates for the pieces produced.

• Straight piece rate

• Flat time rate

• Piece rate

• Time rate