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John is a security officer with a manufacturing company
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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