Accounting for Labour

All direct labour cost must be analysed according to individual
jobs or work orders. Similarly, different types of indirect labour cost also must be collected
and accumulated under appropriate standing order or expenses code number.
The analysis of labour according to jobs or work orders is, usually, made by means of job
time cards or sheets. All direct labour is booked against specific jobs in the job time cards
or sheets. All the idle time also is booked against appropriate standing order expense
code number either in the job time card for each job or on a separate idle time card foreach worker (where the job time card is issued job-wise). The time booked or recorded in
the job time and idle time cards is valued at appropriate rates and entered in the labour
abstract or analysis book.