Some companies classify labour fringe benefits for direct labour workers as part of the direct labour cost and some classify these costs as manufacturing overhead.

Question

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Different companies may have different accounting policies and practices. Some may classify labour fringe benefits such as health insurance and pension contributions as part of direct labour costs, while others may include them in the manufacturing overhead category. Ultimately, the classification of these costs depends on the company's specific accounting policies and practices.

Some Companies Classify Labour Fringe Benefits for Direct Labour Workers