What are the usual internal control problems in labour cost?

What are the usual internal control problems in labour cost?


The usual internal control problems in labour cost include the following:

- Excess staffing
- Lack of experienced and efficient personnel
- Idle time or unusual overtime wages
- Excessive remuneration pattern
- High labour turnover
- Clerical errors or fraudulent practices
- Increase of spoilage due to lack of proper supervision and inspection.
What is idle time? How are its causes classified?
Idle time indicates that time for which wages are paid to the workers but no production is obtained during that time….
How is the cost of idle time calculated?
If the idle time payment is normal and controllable: it should be classified as overheads …
What are the various methods of remunerating the workers?
Various methods of remunerating the workers are: Remuneration on Time Basis, Remuneration on Work Basis
Post your comment