Depending on the organisation direct labour can be categorised as:
A) committed cost
B) discretionary cost
C) Both A and B
D) None of the above

Question

Quizplus · Accepted Answer

Direct labor can be categorized as both a committed cost and a discretionary cost depending on the organization and the nature of the employment contracts or labor agreements in place. Committed costs are those that an organization has made a commitment to incur, possibly due to contractual obligations (such as full-time salaries), while discretionary costs are those that the organization can decide upon or adjust more freely, such as hiring temporary staff for specific projects.

Depending on the Organisation Direct Labour Can Be Categorised As