Archive about 'Materials and Labor'

Gives examples of Material losses

Tweet Material losses include loss of quantity, weight or volume of materials. Some examples of material losses which are incurred from the following: Obsolescence re: change of specification results in certain type of materials become useless Losses during handling like in pilferage, breakage, etc Storage like fading, rusting, warping affect the materials or inventories Loss […]

What do you think should the objectives of an efficient system of storekeeping

Tweet Inventories whether they are materials, work-in-progress and finished goods constitutes a large part of cost for an organization. It is therefore important to understand the following major objectives of an efficient system of storekeeping which are as follows:- That not too much inventories is held That not too little inventories is held That loss […]

What is Rowan Premium Bonus Scheme?

Tweet Purpose of Rowan Premium Bonus Scheme: An incentive scheme to reward direct labor for saving time during the production process This method rewards the production worker with a proportion of the time saved Formula: Proportion of time saved = Time taken/Time allowed x Time saved Illustration: Mr. A is being paid $9 per hour. […]

Labor Costing: Importance of Recording Accurately & Methods of Recording

Tweet The Importance of Recording Labor time accurately:- It is important to record labor time accurately for the following reasons: To compute wages To analyze the time spent for costing purposes and For planning and control purposes The Methods to record labor times Time sheets record the worker’s time spent on each job. The time […]