Chapter 5: Labour

Question 1

Define remuneration

Answer 1

Remuneration is the payment or compensation someone receives for the work they do

Question 2

What are the three steps to account for labour costs in the wages control account?

Answer 2

1. Total labour costs
Debit wages, credit bank
2. Direct labour costs
Debit production or WIP, credit wages
3. Indirect labour costs
Debit overheads, credit wages