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Commerce · Q318

Costing

Graduate and Post Graduate · Commerce · question 318

Q318

An overtime is considered in cost accounting as

A.
indirect costs
B.
overhead costs
C.
premium costs
D.
both a and b
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
An overtime is considered in cost accounting as indirect costs and overhead costs. Work performed by an employee or worker in excess of a basic workday ( typically 8 hours a day, 5 days a week) is overtime.