The Advantages of Time Study Are As Follows. (Cost Accounting)
- It helps to calculate the premium or bonus under the incentive schemes of wage payment.
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- It determines the standard time for job, by which the efficiency of worker is increased.
- The labor requirements are correctly assessed because standard time for various jobs are known.
- It facilitates budgeting of labor costs.
- It helps in exercising cost control through proper production control.
- When standard time is taken management can be kept attention on causes of idle time.