Archive | Cost Accounting

Merit rating is the technique of evaluating actual performance of the employees in job. It is alone to measure the individual performance and efficiency of the workers who are working on similar jobs.

These are the following steps that may be taken to reduce the labor turnover:

Fringe benefits are the additional emoluments given by employer to employee except basic salary.

These are various monetary benefits available to the workers such as:

Under this method each worker is allotted a metal disc or a token with a whole bearing his identification number.

The dial time records is a machine which has a dial around the clock. The dial has a number of wholes and each whole bears a number corresponding the identification number of the workers concerned.

The main purpose of time keeping are as follows:

According to “F. B. Gilrith” motion study consists in dividing work in to most fundamental elements possible, studying these elements separately and in relation to one another…

Personal causes: Workers may leave the organisation purely on personal grounds. These may b Death, Family problems and responsibility, Personal betterment and Retirement.

Labor turn over is the percentage change of the labor force of an organisation. It is common feature in any concern that some employees leave the concern and others join in it.

Indirect labor is that labor which is not directly engaged in the production of goods and services but which indirectly helps the direct labor  engaged in production.

department which reflect the physical movement of stocks and their current balances”.

We all know that present world is giving too much importance to quality. In the present competitive world, the manufactures can survive only if they produce and supply quality products at reasonable rates to the customers.

Material management does not only cover management of material policy. It is also related to other activities such as inventory control, material planning, executing the policy etc.

Ordering level is that level of material in the store where store keeper initiates fresh requisition to the purchasing departments for purchase of materials.

Store day sheet in cost accounting can be defined as daily record sheet depicting the daily receipts, issues and direct deliveries.