Page 135 - DCOM202_COST_ACCOUNTING_I

Unit 6: Labour Cost

6. Critically evaluate the rate system and bonus system of wages payment. Notes
7. Under Time Rate method payment is made at a rate on attendance by hour, day, week or
a month regardless of output. What are the key significance and drawbacks of time rate
method?
8. Do you think idle time can be reduced by implementing some effective strategies? Discuss.

9. What factors would you take into consideration in introducing an incentive scheme?
10. Discuss the advantages and disadvantages of the piece rate method of payment of wages.
Do you consider that workers remunerated by reference to this method should be required
to maintain time records?

Answers: Self Assessment

1. labour turnover 2. overhead expense
3. Idle time 4. Normal idle time
5. Abnormal idle time 6. profit & Loss Account

7. separation method 8. Force Choice Description Method
9. Normal Idle time 10. Job evaluation
11. Time recording clocks 12. job card method
13. Disc 14. True
15. False

6.10 Further Readings

Books Arora M. N., Cost and Management Accounting, Himalaya publishing House,
2010.
Pandey, I.M., Management Accounting, Excel Book, New Delhi, 2007.
Richard G. Schroeder, Myrtle W. Clark, Myrtle W. Clark, Jack M. Cathey, Financial
Accounting Theory and Analysis: Text Readings and Cases, John Wiley & Sons Inc.
Shah paresh, Management Accounting, Oxford University press, New Delhi, 2009.

Online links www.futureaccountant.com
www.managementstudyguide.com

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