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CH 4 Costing For Labour
CH 4 Costing For Labour
Instructor’s Manual
CHAPTER
FOUR Costing for Labour
And, as it works, th’ industrious bee computes its time as well as we.
Andrew Marvell
Learning Outcomes
The study of this chapter should enable students to:
explain the concepts, procedures, methods, and techniques of labour costing and control
describe the mechanics of labour costing and control
discuss the importance of labour costing and control in reducing costs, improving productivity
and achieving profitability
Instructor’s Focus
❏ Define what is labour.
❏ Introduce the elements in managing labour.
❏ Describe and explain:
¤ recruitment;
¤ recording of labour times;
¤ methods of remuneration;
¤ incentive schemes;
¤ wages department procedure;
¤ accounting for wages;
¤ labour turnover;
¤ labour techniques;
¤ wage reports;
¤ fringe costs;
¤ vacation and holiday pay, and
¤ set-up costs.
❏ Highlight, present and explain the documents used.
❏ Illustrate through worked examples the methods of remuneration, incentive schemes, labour
turnover rate, overtime premium and learning curve.
❏ Conclude the chapter with an illustration of comprehensive examples and attempt at the structured
and multiple choice questions.