Employee cost should reflect the total cost to the company for compensating employees for their services and also for retaining them. Therefore, employee cost includes both monetary and non-monetary benefits. Employee cost does not include the cost of recruiting and training employees. Examples of monetary benefits are basic salary and dearness pay/allowance; overtime pay; productivity, and profit sharing bonus; house [...]
In this article we will discuss about the causes of Idle time of workers. Also learn about the accounting treatment of idle time. In the production process, lost time may occur for several reasons. The idle time is the difference between hours paid and hours worked. Where the workers are paid on time basis, the idle time is the difference [...]
In this article we will discuss about the treatment of special labour costs. Cost of Apprentice: The costs incurred on apprentice and training are treated as Production Overhead since these costs are a part of the normal industrial activity. Employee Welfare Costs: In an organization some of the expenses are incurred on canteen, hospital, recreation, transport etc. for the welfare [...]