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Question
Write a short note on direct labour cost.
Short/Brief Note
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Solution
- Direct labour is defined as labour that is used actively and directly in the production of a certain good, and the expense associated with it is known as direct labour costs.
- Direct labour expenses can be easily and precisely linked to certain items.
- For example, a carpenter's pay.
- Direct labour includes labour engaged in actual production of the product.
- Direct labour includes labour engaged in aiding production by supervision, maintenance, etc.
- Direct labour includes inspectors, analysts, etc., specially required for such production.
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Elements of Cost
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