Professional Documents
Culture Documents
Remuneration methods
Incentive schemes and productivity
Labour turnover
Classifying and accounting for Labour costs
Labour Costing
Elements of Labour Cost.
Total pay
Number of units
Straight piecework with guaranteed
minimum wage
Labour
cost
Number of units
Cont…
Labour
cost
Number of units
Cont…
Required.
How much would be paid to following employees for the week.
Peter produced 1500 Units 1998 + 1503 = $ 3501
Mercy produced 2400 Units 1998 + 3000 + $3005 = $7003
Illustration
Required.
Total pay of employee for the job.
Characteristics of bonus / incentive
schemes
ii) Rules and conditions of the scheme should be easy to understand and not
liable to misinterpretations.
v) Only those employees who made the extra effort should be rewarded.