CAF-5 · Chapter 4 · Question 1 of 10
How is "indirect labour" defined and classified in cost accounting?
Test yourself: pick an answer
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.
More Labour Costing MCQs
- Q3Which of the following best distinguishes "Labour Productivity" from "Labour Efficiency"?
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- Q6Under Variant 2 of the Guaranteed Minimum Wage plan, an employee receives a basic guaranteed wage for standard output, plus:
- Q7According to the Learning Curve theory, what happens when the cumulative output or production doubles?
