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Labor Cost Control Interview Questions & Answers - Learning Mode
COOLINTERVIEW.COM COST ACCOUNTING INTERVIEW QUESTIONS LABOR COST CONTROL INTERVIEW QUESTIONS QUESTIONS & ANSWERS - LEARNING MODE

Labor Cost Control Interview Questions & Answers - Learning Mode

It is the system followed by the management to maximize quality output at a minimum cost. Labor cost control includes the process of developing various forms, studying and recording the activities and performance of workers, calculating the correct amount of wages and making payment in time.

Try Labor Cost Control Interview Questions & Answers - Exam Mode

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Labor Cost Control Interview Questions & Answers - Learning Mode
Try Labor Cost Control Interview Questions & Answers - Exam Mode
Question: State the differences between time keeping and time booking?

Answer: Time Keeping is concerned with the attendance and wage calculation of employees whereas Time Booking is the reporting of each worker?s time for each job and department for cost analysis and dividing labor cost into various jobs and departments. Source: CoolInterview.com
Question: What are the functions of time keeping department?

Answer: The main functions of time keeping department are as follows:
1.To maintain discipline, regularly and punctuality in the factory.
2.Meeting the statutory requirements.
3.Preparation of pay rolls where workers are paid on time basis.
4.To record the arrival and departure time of laborers for making distinction between normal time, overtime, delay in attendance and early leaving.
5.For overhead rates, if based on labor hours.
Source: CoolInterview.com
Question: What is idle time?

Answer: There is bound to be some difference between the time booked to different jobs or work orders and gate time. The difference of this time is known as idle time.Idle time is that time for which the employer pays, but from which he obtains no production. Source: CoolInterview.com
Question: Explain daily time sheets method of time booking?

Answer: Under this method, a daily time sheet is provided to each worker on which time spent by him on various work orders is mentioned. This method can be conveniently used if the worker works on various jobs of short duration like in maintenance jobs. But this method is disadvantages also as it involves considerable paper work. Source: CoolInterview.com
Question: Give few examples of normal idle time.

Answer: (i) The time taken in picking up the work for the day.
(ii) The time which elapses between the completion of one job and the commencement of the next job.
(iii) The time taken for personal needs and tea breaks.
(iv) The time lost when production is interrupted for machine maintenance. Source: CoolInterview.com
Question: What is the treatment of the cost of normal idle time?

Answer: It is unavoidable cost and as such should be included in cost of production. Source: CoolInterview.com
Question: What is direct labor?

Answer: Labor involved in production rather than administration, maintenance, and other support services. Source: CoolInterview.com
Question: What is labor cost?

Answer: The cost of labor is the sum of all wages paid to employees, as well as the cost of employee benefits and payroll taxes paid by an employer. The cost of labor is broken into direct and indirect costs. Direct costs include wages for the employees physically making a product, like workers on an assembly line. Source: CoolInterview.com
Question: What is labor turnover?

Answer: The ratio of the number of employees that leave a company through attrition, dismissal,or resignation during a period to the number of employees on payroll during the same period.
Source: CoolInterview.com
Question: What is Halsey Premium Bonus Plan?

Answer: This plan was introduced by F A Halsey in 1891. It is a simple combination of time and piece rate systems. A worker is paid a guaranteed base rate and is rewarded when his performance exceeds standard. A standard time is established in respect of each job or unit. Bonus is paid on the basis of 50% of time saved.The total wages payable is calculated as under:
(Hourly rate X Time taken) + (50% X Time saved X Hourly rate)
Source: CoolInterview.com
Question: Name the two basic methods of labor remuneration.

Answer: There are two basic methods of labor remuneration:
(a) Time Rate System
(b) Piece Rate System
Source: CoolInterview.com
Question: What is time booking? What are the different methods used for doing this?

Answer: Time booking is recording the time actually spent by a worker on various jobs done by him in the factory for cost analysis and dividing labor cost into various jobs and departments. It also helps in control over wastage of time- idle time.Different methods used for time booking are:
1) Daily Time Sheets
2) Weekly Time Sheets
3) Job Cards Source: CoolInterview.com
Question: Explain job cards method of time booking?

Answer: Job Card is a method of recording details of time with reference to the jobs or work orders undertaken by the workers. This method facilitates the computation of labor cost with reference to jobs or work orders. Source: CoolInterview.com
Question: What is overtime?

Answer: Work performed by an employee or worker in excess of a basic workday (typically 8 hours a day, 5 days a week) as defined by company rules, job contract,statute, or union (collective) agreement. Source: CoolInterview.com
Question: What is indirect labor?

Answer: Indirect labor refers to worker's hours that are spent on working on projects that cannot be traced back to specific production units or products. In other words,indirect labor is employee work that can't be billed to goods produced. Source: CoolInterview.com
Question: Who is a timekeeper?

Answer: An employee who maintains a record of the hours worked by the other employees. Source: CoolInterview.com
Question: Explain weekly time sheets method of time booking?

Answer: In this method time is recorded for all the jobs done during the week instead of recording the work done for a day only. One sheet is allotted to each worker.It involves less paper work. These types of weekly time sheets are useful for intermittent types of jobs like construction work. Source: CoolInterview.com
Question: What is abnormal idle time?

Answer: It is that time the wastage of which can be avoided if proper precautions are taken. Source: CoolInterview.com
Question: Explain the time rate system of labor remuneration. How can it be calculated?

Answer: Under the time rate system, workers are paid according to the time for which they work. Payment may be on hourly basis, daily basis or monthly basis. In this system, no consideration is given to the quantity or quality of work done. When payment is made on hourly basis, total wages payable are calculated as follows:
Wages = No. of hours worked x Rate per hour
b)Piece Rate System
Wages under this system are paid according to the quantity of work done. A rate is fixed per unit of produc Source: CoolInterview.com
Question: Explain Taylor's Differential Piece Rate System.

Answer: This system was introduced by F. W. Taylor, the father of Scientific Management. The main features of this incentive plan are as follows:
a.Day wages are not guaranteed, i.e. it does not assure any minimum amount of wages to workers.
b. A standard time for each job is set very carefully after time and motion studies.
c. Two piece rates are set for each job-the lower rate and the higher rate.

Source: CoolInterview.com

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