Page 50 - F2 Slides 2017-18
P. 50

Direct or Indirect Costs?




                                                             ‘Type’ of worker





                                                                                                  Indirect workers
            Direct workers - directly involved in                                               (Maintenance staff,


                            producing output                                                 supervisors, Canteen)






      Direct Labour cost  Indirect Labour cost




      • Basic Pay                        • General overtime
                                            premiums                                          Indirect labour cost

      • Overtime                         • Bonus payments

         Premium ‘on                     • Idle time                                       ALL COSTS
         specific job’, ‘at              • Sick pay

         customer’s                      • Time spent on

         request’                           indirect jobs







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