INDIRECT LABOR COSTS AND IMPLICATIONS FOR OVERHEAD ALLOCATION

Article OPEN
Bea Chiang;
(2013)
  • Journal: Accounting & Taxation,volume 5,issue 1,pages85-96
  • Subject: Indirect Labor Cost, Labor Cost, Overhead Allocation, Cost Accounting, Indirect Labor Cost Allocation
    • jel: jel:J3 | jel:M2
    acm: ComputingMilieux_GENERAL | ComputingMilieux_THECOMPUTINGPROFESSION

Cost accounting typically allocates indirect labor cost to cost object based on direct labor hours. The allocation process implicitly assumes that indirect labor costs vary proportionally with direct labor hours. The assumption of a linear relationship between indirect ... View more
Share - Bookmark