Labour Costs

Question 1

Name 3 methods of calculating pay?

Answer 1

Time rate - Basic Rate
Overtime - A form of time rate - payment for extra time worked
Piecework - Based on work carried out
Piecework with guaranteed minimum payment.

Question 2

How can Labour costs been classified

Answer 2

Direct and indirect labour costs
Cost centres and profit centres

Question 3

How do Labour costs behave?

Answer 3

Time rate = Fixed Costs
Time rate + Overtime = Semi variable Costs
Piecework = Variable Costs