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CMA I - Labour Costing

Total questions: 12

Worksheet time: 6mins

Name
Class
Date
1.

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

a)

Personnel manager in a company servicing cars.

b)

Bricklayer in a construction company.

c)

General Manager in a DIY shop.

d)

Maintenance manager in a company producing cameras.

2.

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

a)

Direct labour cost

b)

Prime cost

c)

Administrative overhead

d)

Factory overhead

3.

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?

a)

Differential piecework.

b)

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

c)

Straight piecework.

d)

Piecework with a guaranteed minimum daily wage.

4.

Which of the following should be classified as indirect labour?

a)

Machine operators in a factory producing furniture.

b)

Lawyers in a legal firm.

c)

Maintenance workers in a power generation organisation.

d)

Lorry drivers in a road haulage company.

5.

Piece workers are paid wages on __________ basis.

a)

Piece Rate

b)

Time Rate

c)

Time saved basis

d)

None of the above

6.

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

a)

Normal goods

b)

Specific job

c)

Factory

d)

Customer

7.

Wages paid during normal idle time is treated as _________.

a)

Factory OH

b)

General OH

c)

Labour Cost

d)

Bonus

8.

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

a)

Turnover

b)

Labour turnover

c)

Seasonal job

d)

Mobility

9.

Cost of labour turnover classified into ______ and ______ .

a)

Preventive costs, labour costs

b)

Replacement costs, product cost

c)

Preventive costs, Replacement costs

d)

Labour cost, product cost

10.

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

a)

Straight piece rate

b)

Flat time rate

c)

Piece rate

d)

Time rate

11.

_______ labour cost is the remuneration paid to the employees who are directly engaged in the manufacturing operations.

a)

Indirect

b)

Direct

c)

Normal

d)

Abnormal

12.

Break down of machinery comes under ______ idle time.

a)

Not Idle

b)

Idle

c)

Normal

d)

Abnormal