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Commerce · Q286

Costing

Graduate and Post Graduate · Commerce · question 286

Q286

Labour related to manufacturing of product can be classified under

A.
direct manufacturing labour costs
Answer
B.
indirect manufacturing labour costs
C.
work in process cost
D.
finished costs

Answer: Option A

Solution

Answer: Option A
Solution:
Labour related to manufacturing of product can be classified under direct manufacturing labour costs. The cost of labor is the amount of employee wages and benefits, plus payroll taxes paid by an employer. The cost of labor can be broken into direct and indirect costs.