Pop Quiz 2 - Labor Costing

Which of the following is NOT a component of labor cost in a manufacturing setting?

• Overtime pay

• Idle Time Cost

• Regular wages

• Employee benefits (e.g: EPF, SOCSO)

Piecework is a compensation method where employees are paid based on:

• The number of hours worked

• A fixed monthly salary

• The quantity of work completed

• A percentage of company profits

What is the purpose of labor cost analysis in cost accounting?

• To assess employee morale

• To control labor costs and improve cost efficiency

• To increase the number of employees

• To determine employee satisfaction

Which of the following best describes a time-based scheme for paying employees?

• Payment based on the quantity of work completed

• Payment based on a fixed hourly wage

• Payment based on the number of years of service

• Payment based on the cost of living index

In labor cost accounting, what is an efficiency factor?

• The percentage of the workforce in a given department

• The ratio of overtime hours to regular hours worked

• A measure of how efficiently employees complete their tasks

• The percentage of employees eligible for retirement benefits

In payroll costing, what is a key consideration when calculating the total cost of payroll?

• Measuring production efficiency

• Evaluating employee job performance

• Compliance with labor laws and regulations

• Assessing employee morale

Overtime pay is generally calculated at a higher rate than regular wages.

• TRUE

• FALSE

In piecework schemes, employee earnings are directly tied to their level of productivity.

• TRUE

• FALSE

Payroll costing and labor costing are identical terms that can be used interchangeably.

• TRUE

• FALSE

In a bonus scheme, the bonus is calculated based on the time saved, and the worker’s wages are that bonus only.

• True

• False