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Direct or Indirect Labour Cost

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Direct or Indirect Labour Cost

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by AvatarJohn Moffat.
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  • October 7, 2016 at 6:32 pm #342649
    AvatarOke
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    In a service based organization,is a call center agent who works in the customer service department answering questions about the service provided and responding to customer complaints regarded as a direct or indirect labour cost as my understanding of an indirect labor cost is one that would have been incurred regardless of whether the service is provided or not. e.g rent

    October 8, 2016 at 2:05 am #342675
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54839
    • ☆☆☆☆☆

    Direct costs relate to the production of goods and are costs that can be measured on a per unit basis – that directly relate to each unit.

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