Question

Labour cost that is specifically incurred for or can be readily charged to or identified with a specific job, contract, work order or any other unit of cost, will be classified as which among the following?

A Indirect Labor Correct Answer Incorrect Answer
B Direct Labor Correct Answer Incorrect Answer
C Overheads Correct Answer Incorrect Answer
D B and C Correct Answer Incorrect Answer
E A and B Correct Answer Incorrect Answer

Solution

Labour cost that is specifically incurred for or can be readily charged to or identified with a specific job, contract, work order or any other unit of cost is referred to as Direct Labor. 

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