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Managerial accounting The workers coming under the first category constitute direct labour and the wages paid to them are called direct wages. In a factory,

Managerial accounting The workers coming under the first category constitute direct labour and the wages paid to them are called direct wages. In a factory, where production of a number of products is undertaken or in a jobbing concern, workers are given job cards on which they note the time devoted to each job or product. These job cards are then analysed job wise so that the wages attributable to each job can be computed. Direct labour cost is that portion of wages or salaries which can be identified with and charged to a single costing unit. It can be easily identified with and charged to a single costing unit as there is a direct relationship with the product/process. Direct labour cost can be easily calculated and is quite significant in amount

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