John is a security officer with a manufacturing company

Accounting Nov 16, 2020

John is a security officer with a manufacturing company. He is paid £1.500 a month. John’s salary can be considered as:

Indirect labour
Direct labour
Prime Cost
Production cost

Expert Solution

Jhon's salary can be considered as a indirect labour because Jhon is a security office and not directly but indirectly connecte with th manufacturing process so it's salay is considered as indirect labour.

Salary paid to the workers who are directly connected with the production process is considered as Direct labour

Prime cost is the total of Direct material and Direct labour

Production cost is the costs which are incurred for completion of finished goods

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