Skip to content

Ask the Tutor ACCA MA

over time premium

Uuzair7y ago
sir my question is why overtime premium is regarded as an indirect cost although production is being done at that period???
John MoffatJohn MoffatTutor7y ago#1
The normal pay is treated as a direct cost - it is only the premium for the overtime that is indirect (unless of course it is for a specific job) because it is a cost that should not normally be incurred during production.
Sign into reply to this topic.