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CAF-5 · Chapter 4 · Question 1 of 10

How is "indirect labour" defined and classified in cost accounting?

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Reveal answer & explanation

Correct answer: B) Labour that cannot be readily charged to a specific cost unit and is treated as part of factory overheads.

Explanation

The study text defines indirect labour as cost that cannot be readily charged to or recognized with any cost unit or specific job. Therefore, it is treated as part of the factory (production) overheads.

All 10 questions in Chapter 4Labour Costing MCQs with answers

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