The Objective in Costing Human Resources Is Not Just to Measure

question 48

True/False

The objective in costing human resources is not just to measure the relevant costs,but also to develop methods and programs to reduce the costs of human resources by managing the more controllable aspects of those costs.

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Definitions:

Activity-Based Costing

A costing method that assigns overhead and indirect costs to related products and services based on their use of activities.

Direct Labor Rate

Direct labor rate is the amount paid per hour or unit of work to employees who are directly involved in the production of goods or services.

Direct Materials Cost

The cost of raw materials and components that are directly used in the manufacture of a product.

Traditional Costing

A costing methodology that allocates overhead costs based on a single, volume-based cost driver, often used in less complex manufacturing environments.